A report by SEC inspector general H. David Kotz claims that chairman Christopher Cox's regulators stood by amid shriveling capital ratios and growing subprime holdings leading to the collapse of Bear Stearns, Bloomberg News reports.

Kotz’s report was requested by Senator Charles Grassley to examine the role of regulators prior to the firm's collapse in March. Before it was released to the public on Sept. 26, Kotz deleted 136 references, many detailing SEC memos, meetings or comments, at the request of the agency's division of trading and markets that oversees investment banks.

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