The Government pressed ahead with "an unnecessary and botched fire sale of Royal Mail," the shadow trade minister said.
Ian Murray said as a result of this, taxpayers "have been short changed by hundreds of millions of pounds while the Government's 'priority' City investors made a killing at the public's expense."
Mr Murray said: "The cross-party committee's damning report reinforces the significant criticisms which have already been made by the National Audit Office and others.
"David Cameron's Government still has serious questions to answer."
More top news
A 62-year-old woman has been found alive more than a week after she vanished while on a hiking trip.
The first African American actor to play the lead role in Les Misérables on Broadway has died, aged 21.
Crisis talks are to be held on the future of curry houses as cheap supermarket deals and immigration rules threaten the £4 billion industry.