More than 10 years after a crackdown on conflicts of interest at Wall Street investment banks, many of the biggest financial firms have been taken to task by a regulator for using their research analysts to curry the favor of a client in a stock offering.
The New York Times reports that Wall Street’s self-regulatory group, the Financial Industry Regulatory Authority, said on Thursday that it had fined 10 firms a total of $43.5 million for allowing their research analysts to solicit investment banking business and for offering favorable research coverage in connection with a planned initial public offering of the retailer Toys 'R' Us in 2010.
Among the firms fined were Goldman Sachs, JPMorgan Chase, Citigroup and Barclays.
In settling the matter, the 10 firms neither admitted nor denied the charges.
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