Politicker NJ reports on a clause in the prospectus for an MF Global bond fund that will pay an additional 1% interest if CEO Corzine is offered and confirmed to a White House position.
I'm not really sure if this is idle speculation or legitimate. From what I gather, MF Global has been using Jon Corzine's name for their marketing efforts and losing him is a loss to the company so the clause in the bond fund is to protect investors that purchased the bonds solely on his being at the head of the firm.
It is curious though that this clause is only in the prospectus for the bond fund and not other funds at the firm (or at least hasn't been reported as such). The clause does not specify Secretary of Treasury, only "appointment to a federal position". If the clause isn't in other prospectuses, then I'd get curious because you can assume the Treasury Secretary has more influence on the bond market than any other investor market out there.
Hmm...
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