NEW YORK (AP) — The top securities regulator in Massachusetts has fined Citigroup $2 million, charging that an analyst there leaked confidential information about Facebook's initial public offering.
Secretary of the Commonwealth William Galvin announced the charges Friday. Citi agreed to the settlement without admitting or denying wrongdoing.
Citi was part of the team of banks that helped underwrite the deal that made Facebook a public company in May. When a bank helps underwrite such a deal, it has information about a company that the broader investing public does not have. The bankers who underwrite the deal are not supposed to act on that information or share it with any favored clients, because it would give them an unfair advantage over the public.
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