Citigroup has been fined $30 million by the Commonwealth of
Massachusetts in a settlement after a Citi analyst sent confidential
research information to major clients without sharing it with the
public, reports Reuters.

The research, which included negative order forecasts for the iPhone,
was shared with major Citi clients including SAC, T. Rowe Price,
Citadel, and GLG partners -- but not with Citi's retail investors,
putting them at a competitive disadvantage.

Quote:
"The emails between Kevin Chang and the hedge funds reveal this cozy
culture which illustrates again that there are two types of customers;
big ones and retail customers who often don't receive this information,"
[Massachusetts Secretary of State William] Galvin said in a telephone
interview.

The complaint cites an email from an unidentified SAC employee who asked
a contact at Citi "can u send me everything u have on the entire iphone
4/4s/5 supply chain?.

Citi employees responded immediately by asking their colleagues "can you
please send directly to (employee for SAC Capital) ... He needs it asap
- works directly for (SAC Capital).'
Citi was previously fined $2 million by Massachusetts for improper
disclosures related to Facebook's IPO last year. The analyst in
question, Kevin Chang, was terminated by Citi last month.

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Ahh, banksters!