Citi fined by SEC over handling of U.S.-listed shares of international companies
Citigroup was fined $38.7 million by the Securities and Exchange Commission over its handling of what are called "pre-released" American Depositary Receipts. The SEC found that Citibank improperly provided ADRs to brokers in thousands of pre-release transactions when neither the broker nor its customers had the foreign shares needed to support those new ADRs. The SEC said it is the second action against a depositary bank and sixth action against a bank or broker resulting from the SEC's ongoing investigation into abusive ADR pre-release practices. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.