mr. roseman. >> chairman, ranking member, and members of the subcommittee, my name is michael roseman, former risk officer of mf global group from january 2008 to january 2011. thank you for the opportunity to testify today. i hope that my comments will help you continue to build on your knowledge of the events that led to the collapse of mf global. >> mr. roseman, i would ask you to pull your microphone a little closer to you there. >> that good? regarding my background aerospace engineering graduating from the university of north carolina -- university of delaware as aerospace engineer. 1984 received an mba from north carolina and pursued a career in financial services. i first joined a company for risk analysis. moved and co-managed us dollar tc option portfolio. for a number of years before returning to risk management as global head of market risk. in 2001 i joined a bank in montreal as head of u.s. risk oversight onfor all trading, underwriting and investment activities in the united states and with a mandate to strengthen risk management activities and capabilities in the u.s. then in

kiko canseco asked michael roseman about his dismissal from mf global and the issues surrounding his dismissal. >> mr. roseman, you were told that you were no longer needed as chief risk officer of mf global in january of 2011. is that correct? >> yes, sir. >> okay. so the cro is an important job. i imagine in order to replace you, it would require at least a few months of a search process. do you know when mf global began to search for your replacement? >> i do not, sir. >> okay. in what month was your biggest disagreement with jon corzine over liquidity risk of european sovereign rtms? >> i would say the discussions started becoming much more material in september. >> okay. in what month was it that you made your presentation to the board saying that the board should not follow mr. core skin's advice to increase mf global's europe -- >> do you have an opinion whether or not your presentation had anything to do with your removal? >> as i said before, i'm really not in a position to respond to that. but again, i do think my views on risk would go have played a part. >> thank you for your candor. and

mr. roseman. >> my name is michael roseman, former chief financial officer for mf global group.or the opportunity to testify today. i hope that my comments will be to continue to build on your knowledge of the events atmf global. >> i will ask you to pull your microphone a little closer to you. >> is that good? thank you. regarding my background, i started my professional career as an aerospace and engineered after graduating from the university of delaware. as an aerospace engineer. in 1994, i received an m.b.a. from the university of north carolina and pursued a career in financial-services. i first joined financial products with the responsibility of the risk analysis function. the following year, i'm co- manage the u.s. dollar otc portfolio. for a number of years, before returning to risk management. in 2001, i joined the bank of montreal as the head of u.s. risk oversight from trading, underwriting, and investment activities in the united states and with the mandate to strengthen the risk-management activities and capabilities in the u.s. in 2004, i joined new edge as the c

placed a conservative risk manager in michael roseman with a more lenient one in michael stockman in order to make the bigger trades. >> it almost looks like they took mr. roseman out and replaced mr. roseman with the yes-man. does it look that way to you guys? mr. roseman, would you comment at all you gave them information they didn't like and replaced you and put someone in that gave them information that they liked? >> i would say some of my views would have played a part, i believe. >> stockman disputed being a yes-man but then faced the question of whether once those trades were made keeping the risk off the balance sheet was actually ethical. >> as it relates to accounting and accounting treatment and how the -- >> you don't have to keep going. i get the drift. $1.2 billion worth of people got the drift. we're hiding around the corners. we're doing stuff that we don't know is legal. we certainly will not say it's ethical or unethical. and we're deeply sorry. >> one thing they both agreed on is that they warned the board and ceo jon corzine. >> oh, really? >> at different times, the former risk chief said he warned him at the end of 2010 before he

mr. roseman. did you spend any time as to the obligations of chief risk officer? >> uh-huh. >> how much time did you spend with him? >> yes, michael and i spent an hour together two, three-four weeks into my initial -- when i first arrived. and michael's helpful in the transition as well with the series of -- including in a series of e-mails that i vaguely remember receiving but i couldn't speak to exactly. >> mr. roseman indicate his concern about the risk in excess of $2 billion of sovereign debt? >> as a general matter during that brief discussion that we had for an hour, to the best of my recollection, it was certainly indicated as an item of interest as it relates to the company. but i don't recall any specific discussions on -- >> i want to go back to the october 13 break the glass scenario that you indicated in response to the chairman's question. you were not directly involved in this plan, is that correct? >> correct. >> you're the chief risk officer responsible for how many employees of the organization? >> in my -- on my team, approximately 60. >> 60. you're office is in the same building? >> uh-huh. >> liquidity was a

mr. roseman. did you spend any time off of the obligations of the officer? how much time did you spend? >> michael and i spend an hour together three or four weeks into my initial -- when i first arrived. michael was helpful in the transition as well. a series including this series of e-mails that i remember receiving. >> mr. roseman indicated concern of $2 billion of sovereign debt. >> as a general matter during that brief discussion that we had for and our the best of my recollection, certainly indicated an item of interest as it relates to the company. i don't recall any specific discussions. >> back to the october 13th break the glass and area in response to the chairman's question that you were not directly involved in this plan. is that correct? >> correct. >> you are the chief risk officer responsible for how many employees in the organization? >> on my team? approximately 60. >> 60? your office is in the same building? liquidity was a key concern, correct? >> the first time i had an opportunity to look at it carefully was a day ago when it was provided to me. >> the committee -- our commit

mr. roseman. >> chairman neugebauer, ranking member capuano, number said the subcommittee. men with michaelgrossman, chief risk officer of global group from august 2008, january 2011. thank you for the opportunity to testify today. i hope my comments will continue to grow on your knowledge of the events that led to the collapse of mf global. >> and ask you to pull your microphone a little closer to you? >> regarding my background and career as an aerospace engineer i'm graduating from the university of north carolina and university of delaware. as an aerospace engineer, since 1994 i received an mba at the university of north carolina and received a career in financial services. i first joined the responsibilities for the risk analysis function are the following year he moved and comanage the u.s. dollar otc portfolios. for a number of years as global head of market risk. in 2001, he joined the point of montrÉal and risk oversight of underwriting and investment that in the united states and with the mandated strength and risk management at today's in the u.s. then in 2004 i joined as a chief

mr. roseman. did you spend any time as he passed on the obligations of the chief chris officer? how much time did you spend? >> michael and i spent an hour together, too, three, four weeks into my initial when i first arrived and michael was helpful in the transition as well with the series of including the the e-mails that i remember receiving but i couldn't speak to exactly -- >> did he indicate his concern about the rest in excess of $2 billion of sovereign debt? >> as a general matter during that brief discussion that we have for an hour to the best of my recollection, it was certainly an indicator as an item of the interests as it relates to the company. but i don't recall any specific discussions. >> i want to go back to the october 13th break the glass scenario that you indicated in response to the german's question that you were not directly involved in this plan. is that correct? >> correct. you are the chief risk officer responsible for how many employees in the organization? >> in my team approximately 60. >> your office is in the same building? liquidity was a key concern, correct? >> the first time i had