MF Global Lawyer to Break Silence on Wednesday

Jon Corzine, former CEO of MF Global, testifies before the House Agriculture Committee about the bankruptcy of MF Global.
This is Jon Corzine, not Laurie Ferber. Photo: Saul Loeb/AFP/Getty Images

General Counsel Laurie Ferber will deny knowledge of MF Global's massive shortfall in customer money until shortly before the doomed brokerage firm filed for bankruptcy on October 31. That's according to a copy of her expected testimony before the oversight panel of the House Financial Services Committee obtained by Dealbook.

With respect to the correspondence surrounding certain substantial transfers of money from MF Global to JP Morgan, about which the bank sought assurances that it did not belong to customers, Ferber is expected to say, “Although I had no reason to believe that any noncompliant transfers from segregated accounts had occurred or would occur, I did not think that any individual officer or employee should be asked to issue such a broad certificate unless that employee personally had handled all such transfers or was able to review all the transactions within the available time frame."

Edith O'Brien, another Global employee implicated in the suspect transfer, will be present but is expected to invoke her Fifth Amendment right against self-incrimination.