Michael Roseman, the former CRO (chief risk officer) will testify on Thursday, 2/2/12 before a House Financial Services subcommittee which has been exploring the role that ratings agencies and risk officers played in the collapse of futures brokerage MF Global.  It is Mr. Roseman who reportedly raised red flags about aggressive trading bets at MF Global. Michael Stockman, who succeeded Roseman as CRO at MF Global, also will testify, along with representatives from rating agencies S&P's and Moody's. Meanwhile, the hunt for more than $600 million is missing customer funds continues - this, nearly 3 months after MF Global filed for bankruptcy protection.  Lawmakers are studying the vigilance of the ratings agencies, which did not significantly downgrade MF Global until just days before - or hours after - it filed for bankruptcy. Roseman has become a figure of debate about the MF Global collapse, but, until now, has not yet publicly given his account of the firm's risk-taking.  When former CEO Jon Corzine testified at an Agriculture Committee hearing in December, he was asked about whether Roseman had voiced concerns about the firm being overexposed to European sovereign debt.  Corzine responded:

"Mr. Roseman certainly had a different view about the sovereign default risk associated with Euro sovereigns and particularly in the context that we did other business in those countries, and he expressed that to me directly.  He expressed that to the board."

The Committee Chair Frank Lucas then pressed Corzine about whether he was involved in the decision to have Roseman leave his post in early 2011 - to which Corzine replied that he believed the firm needed someone who had more knowledge with the broker-dealer side of MF Global's business, and that there were personnel issues.  Corzine further said:

"There were other issues about how people worked with each other. Not with me in particular, but within the firm that led the board and my agreement to that, that we should change chief risk officers."

Put Thursday on your calendars. For further details: [Reuters, 1/27/12].