WASHINGTON (AP) — A House panel says credit rating agencies and federal regulators contributed to MF Global’s collapse last year. But it pinned most of the blame on ex-CEO Jon Corzine.
A report from the House Financial Services subcommittee found Corzine’s risky strategies caused the failure, reiterating a statement released by the committee’s Republicans Wednesday. The brokerage firm was forced to seek bankruptcy protection last year. More than $1 billion in customer money was lost.
Still, the report says Moody’s and Standard & Poor’s failed to identify the biggest risk: MF Global’s $6.3 billion bet on European countries’ debt.
The report also says the Securities and Exchange Commission and the Commodity Futures Trading Commission failed to share important information about the firm with each other. The two have oversight authority for MF Global.