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DAVID GREENE, HOST:

Now to Congress, where lawmakers are seeking the truth about the brokerage firm MF Global. The company went into financial meltdown last fall.

Yesterday, a former senior MF Global executive appeared on Capitol Hill. Members of the House Financial Services Committee were hoping the former assistant treasurer Edith O'Brien would explain the actions of MF Global's CEO, Jon Corzine.

Here's more from NPR's Jim Zarroli.

JIM ZARROLI, BYLINE: O'Brien has recently been at the center of the MF Global scandal because of the role she played in the transfer of $175 million to cover an overdraft. It happened during the hectic last few days before the firm's bankruptcy, and lawmakers are trying to determine whether the funds came from customer accounts. Such a move would violate federal regulations, which require firms to erect a kind of firewall between their funds and their customers. But any hope that O'Brien would talk about what happened evaporated right away.

(SOUNDBITE OF HEARING)

EDITH O'BRIEN: On the advice of counsel, I respectfully decline to answer based on my constitutional rights.

ZARROLI: O'Brien's decision to take the Fifth was a letdown to lawmakers, in part because of an email she wrote to her staff when she authorized the transaction. In the subject heading she wrote: Per JC's direct instructions - a reference to Corzine. The email appears to refute claims by the former Democratic politician that he didn't know about the transaction. The Republican chairman of the subcommittee holding the hearing, Randy Neugebauer, dismissed her regretfully.

(SOUNDBITE OF HEARING)

REPRESENTATIVE RANDY NEUGEBAUER: I'm disappointed and - because of your answer, but I believe that - because I believe you have important knowledge, and I'm hopeful that maybe at some point in time that you'll reconsider your - and come back and testify before this committee.

ZARROLI: With O'Brien gone, the lawmakers focused their questions on three other MF Global executives who had agreed to testify. But none had much to add to what's known. Chief financial officer Henri Steenkamp said that the week before the bankruptcy was a tumultuous time. The firm was being downgraded by ratings agencies and could no longer borrow the money it needed to survive.

(SOUNDBITE OF HEARING)

HENRI STEENKAMP: And we experienced, you know, in those last couple of days significant liquidity stress, I think what one would call not too dissimilar on the Thursday and Friday as a run on the bank.

ZARROLI: Steenkamp said he was deeply saddened by the money the firm's investors lost. But he said that as the global CFO, he wasn't deeply involved in financial transactions originating in the firm's Chicago office. And he said he didn't know about the use of customer funds until it was far too late to do anything about it. Christine Serwinski, chief financial officer of the brokerage unit, said she was away on vacation when the meltdown happened. As the crisis intensified, she decided to come back early, but she didn't learn how much money was missing until the last minute.

(SOUNDBITE OF HEARING)

CHRISTINE SERWINSKI: I dove into the accounting with my team believing that this must be an accounting error because such a large deficit was simply inconceivably to me.

ZARROLI: There was the same refrain from general counsel Laurie Ferber, who told the subcommittee obviously there was a terrible failure here of some kind, but what it was I don't know. By the end of the hearing, the carefully couched words and polite evasions left lawmakers fuming. Representative Michael Capuano of Massachusetts, one of the few Democrats to take an active role at the hearing, said the testimony reminded him of the time when three top Enron executives appeared before the committee.

REPRESENTATIVE MICHAEL CAPUANO: I told them exactly what I'm going to tell you. They said, OK, none of you did it. Apparently no one did anything wrong, but there's a billion dollars missing.

ZARROLI: Whatever the truth about MF Global, it seems unlikely to emerge from public hearings. But the investigation is by no means over. All three of the witnesses who testified yesterday said they had been contacted by the Justice Department, which is now trying to determine what happened. Jim Zarroli, NPR News.

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