The purpose of the hearing. according to Chairman Lucas, was to gain a comprehensive understanding of the facts surrounding the Peregrine bankruptcy and explore the failure of regulators and self-regulators to discover long-term fraudulent activities. The hearing also sought to receive an update on the MF Global situation and to examine recent regulatory efforts to implement the Dodd/Frank Act.

The first panel presented one witness – CFTC Chairman Gary Gensler. He focused on his agency’s progress in implementing the new financial reform law. The CFTC has completed 36 regulations and has fewer than 20 remaining.

A second panel of industry representatives agreed with the members on the dais that the failures of long-established financial firms has seriously eroded public confidence in the markets.