U.S. futures regulators, scrutinized for missing warning signs before the collapse of Peregrine Financial Group Inc., plan to defend their oversight to congressional lawmakers today and call for new rules. The U.S. Commodity Futures Trading Commission, the main U.S. derivatives overseer, identified lapses in financial controls in at least three reviews of Peregrine since 2000, Gary Gensler, the agency’s chairman, said in testimony prepared for a House Agriculture Committee hearing today. Gensler called for new reviews of self-regulatory organizations, including the National Futures Association, the company’s primary overseer. Peregrine “fooled us,” Dan Roth, president of NFA, said in his testimony. More on Bloomberg here.
