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Citigroup fired the junior analyst in late September, after Galvin's office started looking into the matter. The bank told Galvin's office that the junior analyst acted alone. It agreed to review its policies for overseeing analysts' communications, and to strengthen compliance training for the analysts. "We are pleased to have this matter resolved," bank spokeswoman Sophia Stewart said. "We take our internal policies and procedures very seriously and have taken the appropriate actions." Separately, Galvin's consent order also brought the downfall of the research analyst's boss, a well-known and influential senior tech analyst named Mark Mahaney. The consent order didn't name him, but gave enough information to make him easily identifiable. Mahaney isn't accused of being involved in the research analyst's misconduct. But Galvin's investigation found emails about another damaging incident that happened around the same time. On April 30, Mahaney answered an email from a reporter for a French business magazine, Capital, about his financial predictions for YouTube. That was problematic because the opinions hadn't previously been published and weren't public information. Later, when a Citigroup employee told Mahaney he'd need to get approval to talk to the Capital reporter, Mahaney said that he wouldn't respond to the reporter's questions. Later, after the communications employee learned that Mahaney had already talked to the reporter, Mahaney wrote: "This could get me in trouble. Shoot." Citigroup confirmed that Mahaney is no longer at the bank. A source familiar with the matter, who wasn't allowed to speak on the record about personnel matters, said Mahaney had been fired because he misled the bank about his communications with the French magazine.
On Friday afternoon, Citigroup sent a note to clients who had subscribed to Mahaney's research. "Mark Mahaney has left Citi," it said, without elaborating. As a result, Citi will discontinue its coverage of Expedia, WebMD and 12 other companies.
[Associated
Press;
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