{"id":5732,"date":"2014-12-11T00:00:00","date_gmt":"2014-12-11T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/12\/citigroup_credit_suisse_deutsc"},"modified":"2022-03-11T13:41:03","modified_gmt":"2022-03-11T19:41:03","slug":"citigroup-credit-suisse-deutsc","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/citigroup-credit-suisse-deutsc\/","title":{"rendered":"Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch, & Other Firms Ordered by FINRA to Pay $43.5M Over Activities Related to Toys \u201cR\u201d Us IPO"},"content":{"rendered":"

\t\t\t\tThe Financial Industry Regulatory Authority is fining 10 firms $43.5 million in total for letting their equity research analysts solicit investment business and offering favorable research coverage related to the the planned Toys \u201cR\u201d Us initial public offering. The firms were fined: $2.5 million for Needham & Co. LLC; $4 million for Wells Fargo Securities, LLC (WFC), Deutsche Bank Securities Inc. (DB), Morgan Stanley & Co., LLC (MS),<\/a> and Merrill Lynch, Pierce, Fenner & Smith Inc. <\/a>respectively; and $5 million each for JP Morgan Securities LLC (JPM)<\/a>, Barclays Capital Inc. (BARC), Goldman Sachs & Co. (GS), Citigroup Global Markets Inc. (C)<\/a>, and Credit Suisse Securities USA LLC (CS). FINRA rules state that firms are not allowed to use research analysts or promise favorable research to garner investment banking business.<\/p>\n

In 2010, Toys \u201cR\u201d Us and its private equity owners asked the ten firms to compete for involvement in an initial public offering. The self-regulatory organization said that all of the institutions used equity research analysts when soliciting for this role.<\/p>\n

The company asked the analysts to create presentations to determine what their views were on certain issues and if they matched up with the perspectives of the firms\u2019 investment bankers. The firms knew that how well their analysts did with this would impact whether or not they would be given the underwriting role in the IPO.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority is fining 10 firms $43.5 million in total for letting their equity research analysts solicit investment business and offering favorable research coverage related to the the planned Toys \u201cR\u201d Us initial public offering. The firms were fined: $2.5 million for Needham & Co. LLC; $4 million for Wells Fargo Securities, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3756,3820,3817,3818,3752,3739,3776,3947,3800,3787,3836],"tags":[],"class_list":["post-5732","post","type-post","status-publish","format-standard","hentry","category-barclays-capital","category-citigroup","category-credit-suisse","category-deutsche-bank","category-financial-firms","category-finra","category-finra-settlements","category-goldman-sachs","category-merrill-lynch","category-morgan-stanley","category-wells-fargo"],"yoast_head":"\nCitigroup & Other Firms Pay $43.5M Over Activities Related to Toys \u201cR\u201d Us IPO | Securities Fraud Attorney<\/title>\n<meta name=\"description\" content=\"Citigroup and other firms have been ordered by FINRA to pay over $43.5M over activities related to Toys "R" Us initial public offering.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/citigroup-credit-suisse-deutsc\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Citigroup & Other Firms Pay $43.5M Over Activities Related to Toys \u201cR\u201d Us IPO | Securities Fraud Attorney\" \/>\n<meta name=\"twitter:description\" content=\"Citigroup and other firms have been ordered by FINRA to pay over $43.5M over activities related to Toys "R" Us initial public offering.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. 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