“Citigroup Inc. on Thursday was fined $30 million by Massachusetts for misconduct by a research analyst who in December provided confidential information about a major supplier of Apple Inc. iPhones,” Saabira Chaudhuri reports for MarketWatch.
“The fine was levied by the Secretary of the Commonwealth of Massachusetts William F. Galvin. Recipients of the nonpublic information about the supplier — Hon Hai Precision Industry Co. Ltd. — include SAC Capital, T. Rowe Price, Citadel and GLG Partners according to the Secretary’s office,” Chaudhuri reports. “According to the Secretary’s office, Kevin Chang — a research analyst employed by a Taiwanese affiliate of Citigroup — released unpublished research information to a hedge fund and institutional clients one day before publishing virtually identical information to the public.”
Chaudhuri reports, “On Dec. 13, following the publication of a report cutting Hon Hai production numbers by the Macquarie Group, an Australian competitor to Citi in covering Hon Hai, Mr. Chang was pressured by large hedge fund and institutional clients for his research on Hon Hai, according to the Secretary’s office. In response, Mr. Chang released the information to at least three units of SAC as well as to other hedge fund and institutional clients, said the Secretary’s office.”
Read more in the full article here.
Finally some justice. $30m sounds about right. Maybe all the supply chain leaks will stop and Apple’s price won’t be affected because of it.
They’ll never learn!
Gut: See it’s market manipulation and insider trading.. Why do we put up with this? The gains payback far more than the penalties. I want to see prison terms, company forfeiture and closure… Too big to fail my ass. That’s just a shield to be able to do whatever they want, whenever they want. Lie Cheat Steal Murder… It’s not civilization, it’s chaos and no better than wild abandon.
Brain: Huh??
If you ask me, they’re getting off easy. That’s chump change for them and a lot less than what they earned from leaking Apple’s secrets. People should be tried and if found guilty, go to jail. A little 30 million fine isn’t going to stop this type of behavior in the future. They’ll gladly pay it every time considering the gains from their cheating.
Kudos to the Commonwealth of Massachussets!
Say! Don’t we have a federal regulator system to police these kinds of criminal acts? I think they have the initials SEC and maybe another called FBI?
Where the hell are they? Helpin out with ObamaCare?
(And don’t reply with that govt is shutdown BS)
You had to turn this into a political hell hole thread, didn’t you.
I was with you right up until you just HAD to puke out ‘ObamaCare’. FAIL. Now watch the thread degenerate into extreme stupidity, which is the core of today’s US politics. I puke back at thee!
hope he can get on ObamaCare.
nope, too bad, Australian.
no shit: Need health care coverage? Just dial 1-800-FUCKYO to reach Obamacare’s national hotline…..the Hand Of God at work.
Are you related to BLN?….You are a sick man…
Don’t confuse “sick” with “stupid and blindly following the vast information provided by the Republicans, largely through their mouthpiece Fox News.”
dial it.
Reject the false messiah, Obama!
All Hail the illumination, goodness and wisdom of the True Messiah, botvijerk!
All truth floweth from Him.
botvijerk messiah for President!
“Financial Engineering” – Insane. Anti-Capitalism.
FSCK -U Citigroup scum.
Of course, there is every likelihood that this incident is just the tip of the iceberg. But, as we know, the banking industry is immune from prosecution (Bernie Madoff excepted) so don’t expect anything to change. The US may not feel like a corrupt state but that is only because the corruption happens in boardrooms and closed door political party meetings. In reality the US is corrupt from top to bottom. Perhaps one tenth of 1 percent of corrupt activity is disclosed in the press.
If he had been a US congressmen, it would have been legal.
Gollum, “… I want to see prison terms, company forfeiture and closure…”. So, you want closure. Do you realize that hundreds if not thousands of folks then lose their job, folks that have nothing to do with the misconduct. Also, all the businesses that supply Citigroup product and services are hurt as well. How would you like to show up for work then be told that you are out of work all because someone your company supplies services or products to has shut down which means you are not needed on your job? Please think before you mouth off.