Poor supervision contributed to the downfall of futures brokerage MF Global, House Republicans said in a report released Thursday, underscoring how regulators struggle to get a grip on Wall Street despite the lessons of the financial crisis.
MF Global collapsed in October 2011 under the weight of aggressive bets on sovereign debts, thin capital and questionable disclosures to investors.
Customers were left reeling after it was revealed that more than $1 billion of their money could not be found.
A House of Representatives subcommittee squarely placed blame on MF Global's last chief executive officer, Jon Corzine - a former co-chairman of Goldman Sachs - for creating a culture of unfettered risk. Corzine has denied any wrongdoing.
It also heaped criticism on the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as the New York Federal Reserve bank, for failing to recognize the growing threat that the firm
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