Commodity Futures Trading Commission Chairman Gary Gensler said Tuesday that regulators failed to protect customers of now-bankrupt investment firm Peregrine, from about $200 million in losses. It was part of his testimony at a Senate Agriculture Committee hearing that also looked at the bankruptcy of MF Global, where about $1.6 billion of customer money was lost. The committee also heard from trustees in charge of overseeing bankruptcy proceedings of both companies.
MF Global Holdings, Ltd., which filed for bankruptcy in 2011, was headed by former New Jersey Governor Jon Corzine. The company has been the subject of congressional scrutiny related to the company's demise.
Peregrine Financial Group filed for bankruptcy on July 10, a day after the CEO attempted suicide, leaving a note "describing how he bilked customers of more than $100 million," according to Reuters.