Risk Officer Lacks Authority at MF Global

[Andy Nguyen]

Earlier this year, MF Global replaced its chief risk officer, Michael Roseman, after he repeatedly clashed with Mr. Corzine over the firm’s purchase of European sovereign debt. The new risk officer, Michael Stockman, took over the position in early 2011 with one major difference: unlike his predecessor, he was not allowed to weigh in on the broader implications the trades might have on the firm, including whether they might undermine investor confidence.

http://dealbook.nytimes.com/2011/12/14/mf-globals-risk-officer-said-to-lack-authority/

 

[myampol]

Earlier this year, MF Global replaced its chief risk officer, Michael Roseman, after he repeatedly clashed with Mr. Corzine over the firm’s purchase of European sovereign debt. The new risk officer, Michael Stockman, took over the position in early 2011 with one major difference: unlike his predecessor, he was not allowed to weigh in on the broader implications the trades might have on the firm, including whether they might undermine investor confidence.

http://dealbook.nytimes.com/2011/12/14/mf-globals-risk-officer-said-to-lack-authority/

The two Chief Risk Officers for MF Global (Michael Roseman and Michael Stockman) will testify before a committee of the US Congress on Thursday, February 2nd starting from 10am EST.

http://dealbook.nytimes.com/2012/01/31/mf-global-risk-chief-once-saw-euro-bets-as-acceptable/

Mr. Stockman's prepared written testimony:

http://financialservices.house.gov/UploadedFiles/HHRG-112-BA-WState-MStockman-20120202.pdf

Video of such congressional testimony can usually be viewed live over the web, by a link which appears on the committee's webpage at the appropriate time.

http://financialservices.house.gov/Calendar/EventSingle.aspx?EventID=276489