Securities Arbitration Lawyers BlogFINRA Fines 10 Firms $43.5 Million for Conflicts of Interest by Research Analysts in Advance of an IPO
The Financial Industry Regulatory Authority (FINRA) fined 10 brokerage firms a total of $43.5 million for allowing their analysts to solicit investment banking business and for offering favorable research coverage in connection with the 2010 IPO of Toys R Us.
Firms and fines:
| Barclays Capital | $5 million |
| Citigroup Global Market | $5 million |
| Credit Suisse | $5 million |
| Goldman Sachs | $5 million |
| JP Morgan Sec | $5 million |
| Deutsche Bank | $4 million |
| Merrill Lynch | $4 million |
| Morgan Stanley | $4 million |
| Wells Fargo | $4 million |
| Needham & Co. | $2.5 million |
For the complete FINRA Press Release, click here. These allegations are remarkably reminiscent of claims investors made against FINRA firms relating to the collapse of technology stocks in 2000 including allegations that FINRA firms used its research analysts as cheerleaders for its investment banking departments publishing biased research to help boost IPO’s. A decade later, it does not appear that much has changed on Wall Street.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.