Bloomberg: Wall St. STUNNED by Corzine’s Obama Covenant

Wow. This means I can dust off all my Corzine attack ads and vulnerability studies again if Obama is foolish enough to put this dope in as Treasury head. (Does happy dance)

Bloomberg: Wall St. STUNNED by Corzine’s Obama Covenant

MF Global Holdings Ltd. (MF) took the cult of the Wall Street chief executive officer to a new level with a plan to sell bonds that pay a higher rate if Chairman and CEO Jon Corzine quits to accept a job from the U.S. president.

The futures broker is selling $300 million in five-year unsecured notes, said a person familiar with the offering who declined to be identified because the terms aren’t final. The notes will pay an extra percentage point of interest if Corzine is named to a federal post and confirmed by the Senate before July 2013, New York-based MF Global said in a regulatory filing.

“That seems crazy” said William Larkin, a fixed-income portfolio manager who oversees $500 million at Cabot Money Management Inc. in Salem, Massachusetts, and has 22 years of experience. “I’ve never heard of something like this.”

Corzine, the 64-year-old former governor of New Jersey, helped run Goldman Sachs Group Inc. (GS) from 1994 to 1999 and served in the Senate from 2001 to 2006. Since joining MF Global last year, he’s taken more risk with the firm’s money in a bid to remake the broker into a mid-size investment bank and has sought to alter its capital structure to reduce borrowing costs. The shares rose 9.5 percent in the past year under his watch, while the Standard & Poor’s 500 Financials Index fell 4.9 percent.

A Democrat, Corzine is among the biggest fundraisers for President Barack Obama’s 2012 reelection campaign. Corzine has been the subject of speculation about administration jobs such as Treasury Secretary or White House economic adviser, said Christopher Allen, an analyst at Evercore Partners Inc. in New York.