Treasury Secretary candidates

  • 02 Aug 2011 at 4:51 PM

Jon Corzine Bets MF Global Bond Buyers $3 Million He Won’t Be Treasury Secretary

By Matt Levine

Seriously, he’s taking bets.

Is Jon S. Corzine on the short list to replace Timothy F. Geithner as Treasury secretary?

A preliminary prospectus filed on Tuesday by MF Global, where Mr. Corzine, the former Democratic governor and senator from New Jersey is now chief executive, suggests that just may be a possibility.

MF Global is planning to sell five-year notes on Tuesday with an unusual twist: the notes will pay an extra 1 percent in the interest rate “upon the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and confirmation of that appointment by the United States Senate prior to July 1, 2013,” according to the offering. The higher possible rate reflects how important investors consider Mr. Corzine to be to MF’s prospects and pays them taking the risk that he might leave.

Also it reflects information asymmetry! If Corzine were seriously planning to go to Washington wouldn’t MF not offer to pay an extra 100bps on its debt when he leaves? Continue reading »

  • 05 Jul 2011 at 12:51 PM

Treasury Secretary Corzine?

By Bess Levin

Corzine…has attended secret meetings with the president and has been working on Obama’s 2012 campaign for months, The Post has learned. And, like any good executive, Corzine is looking out for his own bottom line. Success could resuscitate his political career with a top post — such as treasury secretary or a key ambassadorship — if there is a second Obama term. Obama campaigned heavily for Corzine in his failed re-election bid, calling him “our Wall Street guy.” [NYP via BI]