U.S. futures regulator Gary Gensler acknowledged that the regulatory system failed to protect customers of Peregrine Financial Group, which collapsed last week, with its founder admitting to $100 million in fraud.
The case follows another bankruptcy at MF Global. Mr. Gensler, who heads the Commodity Futures Trading Commission, testified Tuesday at a Senate hearing looking to the impact of new financial regulations. The committee also heard from a Securities & Exchange Commission regulator.