Mr McLoughlin said the report made "uncomfortable reading" and outlined its findings.
He told the Commons:
It is clear that the inquiry has identified a number of issues which confirm that my decision to cancel the franchise competition was necessary.
These include a lack of transparency in the bidding process, the fact that published guidance was not complied with when bids were being processed, inconsistencies in the treatment of bidders and confirmation of technical flaws in the model used to calculate the amount of risk capital bidders were asked to provide to guard against the risk of default.
The Laidlaw inquiry also mentions factors "that appear to have caused or contributed to the issues raised".
More top news
Changes in gait could prove to be an early sign of Parkinson's disease, according to a new study.
Tomorrow a new band of rain will move across mainly western Scotland, further south it will stay bright with some sunny spells.
The story of Darek Fidyka, who can walk again four years after his spine was severed, is hopeful. But one case study is very limited.