Sentence Correction

came across this sentence in MGMAT SC guide..

It would hardly be fair for the meatpacking industry to blame regulators for the harm that it has inflicted upon itself in the sub-prime meat sector .

itself is a reflexive pronoun ,but i feel pronoun 'It' is ambiguous and the answer doesn't says that in fact the answer says it refers correctly to the meatpacking industry. Need clarification as this pronoun can refer to the regulators too..

i feel pronoun 'It' is ambiguous

Why so ? There is only one antecedent available as far as i can notice and there is no ambiguity since 'it' is singular and cannot refer to regulators.

i thought regulators is a collective noun..
Anyways still not convinced about this ...can you provide a grammatical sense to this issue rather than denial..??

sherlock wrote:can you provide a grammatical sense to this issue rather than denial..??

I think i had done that in the above post regulators is not a collective noun to be singular. Collective nouns are singular in form but represent a group of people or things. Army, crowd, audience etc. Hope this helps