Two MF Global Chief Risk Officers Will Be Testifying In Congress Next Week

Jon Corzine Oath

[credit provider=”AP”]

Michael Roseman and Michael Stockman, two former MF Global chief risk officers, will testify in a hearing next week on the MF Global bankruptcy conducted by House Financial Services Committee’s oversight and investigations subcommittee, Reuters reported.The hearing, which is schedule for February 2, is the second part of a panel that began last year on Dec. 15, when MF Global executives, including former CEO Jon Corzine, former COO Bradley Abelow and former CFO Henri Steenkamp, testified. The panel is scheduled on the Committee’s website, but the full list of those testifying has not been released.

Roseman was MF Global’s CRO from 2008 until March 2011, according to his LinkedIn. In previous testimonies, Corzine said Roseman had disagreed with the amount of risk that the firm was taking in relation to its European debt holdings. Bear in mind that it was the publication of MF Global’s $6.3 billion worth of European sovereign debt that caused investors to lose confidence in the brokerage firm.

Stock became the CRO of MF Global last March and retained the position until the company went bankrupt, it is unclear if he still retains the CRO title, as several executives have been fired in bankruptcy proceedings. In March 2011, he told that he wanted MF Global to take more risk. “We are going to be actively and aggressively seeking to take risks in a broad fashion. In our client-facing businesses – this is no surprise as we build out – I would suggest we are not taking enough risk,” says Stockman.

Since MF Global filed for bankruptcy on Oct. 31 of last year, the investigation the $1.2 billion shortfall in customer has continued with little avail. Many customers are still waiting to be made whole, as their accounts at MF Global were frozen after the missing money was discovered, and it was announced this week that $700 million of the money may never be returned for U.S. customers because they would have to be shared with UK clients.

The role of CROs in the fall of MF Global has been questioned before by federal officials and the media. It’ll certainly be interesting to hear Roseman’s side of things come February 2.