The Financial Industry Regulatory Authority (Finra) yesterday fined Citigroup $15 million for failing to adequately supervise its research analysts’ interactions with the bank’s clients, the New York Times reported today. In one example cited by Finra, Citigroup hosted “idea dinners” for institutional clients at which some of the bank’s equity research analysts discussed stock tips that differed from their published research. In another, an analyst helped the bank’s investment banking clients with their investor road show presentations before a public offering. Even when Citigroup discovered problems with its analysts’ communications with clients, its disciplinary actions “lacked the severity necessary to deter repeat violations,” Finra said.
