CFTC's Gensler Admits Failure in PFGBest Oversight

The U.S. futures regulator acknowledged on Tuesday the regulatory system had failed to protect the customers of Peregrine Financial Group, which collapsed last week as its founder admitted to a $100 million fraud spanning two decades. In testimony before the Senate Agriculture Committee, Commodity Futures Trading Commission Chairman Gary Gensler was also expected to outline his agency's plans to contain the fallout from the Peregrine case, including a look at the role of self-regulatory organizations (SRO) that police much of the market. "Although we do not know the full facts of what happened in this matter, the system failed to protect the customers of Peregrine," Gensler said in prepared testimony. "Just like the local police cannot prevent all bank robberies, however, market regulators cannot prevent all financial fraud. "Nevertheless, we all must do better." Continue reading this article

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