(Wired) Thanks to a blog leak, the Facebook IPO is an even bigger disaster than previously believed.
Financial leviathan Citigroup fired star analyst Mark Mahaney over leaking confidential Facebook IPO research to TechCrunch and private YouTube forecasts to a French financial magazine, Capital. The leaks were flagged by the Massachusetts Securities Division, the state's financial regulator, which today issued a consent order (.pdf) and fined Citi $2 million for the disclosures.
In falling casualty to the Facebook IPO, Citigroup joins lead underwriter Morgan Stanley, Facebook itself, and the Nasdaq exchange, all of whom have seen their reputations tarnished as a result of the bungled stock debut this past May. Thanks to aggressive pricing, last-minute disclosures, trading failures, and other issues, the Facebook IPO has become a sort of case study on how not to handle a large securities offering.
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