Citi's (C) Mahaney Fired for Disclosure of non-Public Facebook (FB) Information Ahead of IPO

October 26, 2012 11:16 AM EDT
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Citigroup (NYSE: C) is trading over 2.2 percent lower from Thursday's close following reports that a key analyst was fired from the firm following improper disclosure of confidential information related to the Facebook (Nasdaq: FB) IPO.

Mark Mahaney, an Internet Analyst at Citigroup Investment Research, was let go as Massachusetts fined Citi $2 million for not supervising research analysts properly. According to the WSJ, Massachusetts Secretary of the Commonwealth William Galvin said a junior analyst gave a non-public opinion from a senior analyst (Mahaney) to the blog ahead of Facebook's May 18th debut.

Additionally, Galvin said Mahaney disclosed unpublished information about Google's (Nasdaq: YHOO) YouTube to a French business publication.

Citi signed a non-disclosure with Facebook ahead of the IPO.

Mahaney's brief bio, from CrunchBase: "For the past two years, Mark has been ranked #2 in the Greenwich Institutional Investor Poll for the Internet sector and ranked as Runner Up in the Institutional Investor Annual Poll for the Internet sector."

Mahaney's last call on Facebook can be seen here.

For the full filing from Galvin (in pdf format), click here. It gets more into the meat of the topic on page 9.

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