FINRA Should Take Action Against MF Global, Dems Say

Law360, New York (December 4, 2012, 1:22 PM EST) -- House Democrats on Tuesday urged the Financial Industry Regulatory Authority to take action against MF Global Inc., saying the futures broker failed to properly inform the regulator of its deadly debt exposure before collapsing.

FINRA could have imposed appropriate charges to protect investors had MF Global appropriately informed the regulator of its overexposure to European sovereign debt, said Rep. Michael Capuano, D-N.Y., in an addendum to a House Republican report on the brokerage’s collapse.

“MF Global blatantly misled FINRA in September 2010 when it responded to...
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