Finra Fines 10 Banks Over Their Pursuit of an IPO’s Business — 5th Update

Citigroup Inc., Goldman Sachs Group Inc. and eight other securities firms were fined a total of $43.5 million by regulators who said the companies offered favorable stock research in hopes of winning underwriting business in an initial public offering by Toys “R” Us Inc.

The overall fines are believed to be among the biggest in a single case since the 2003 research settlement that barred research analysts from participating in IPO pitches because of potential conflicts of interest. The Financial Industry Regulatory Authority said analysts at the 10 firms became part of the sales pitch when Toys “R” Us and its owners interviewed investment bankers in 2010.

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