Futures Insurance Seen As Band-Aid For Brokerage Failures

Law360, New York (August 01, 2012, 7:24 PM ET) -- U.S. lawmakers are weighing whether to establish an insurance fund for futures customers similar to those available for securities investors and bank depositors, but experts say the move, while welcome, would do little to address the lapses that led to the failures of MF Global Inc. and Peregrine Financial Group Inc.

During a hearing Wednesday, senators questioned why futures customers lacked the type of insurance protection offered to securities investors through the Securities Investor Protection Corp. and bank depositors through the Federal Deposit Insurance Corp....
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