MF Global addresses Corzine departure flap

In a statement issued Wednesday, MF Global addressed the recent speculation over the possible departure of its president, former Gov. Jon Corzine.

According to the company, Corzine has no plans to go anywhere, at least not yet.

“Jon has not been made any offers. The underwriters included the key man event covenant in the prospectus to address investor questions,” said the company referring to a clause in a recent prospectus promising to boost the interest rate on the company’s five-year notes if its chief executive leaves for a government job. 

The statement, known in investment circles as a “key man event” clause, set off a flurry of speculation over the possibility that Corzine had been invited to join the Obama administration, possibly as Treasury Secretary or in another key economic role.

Jon has made it clear to MF Global’s investors, clients and employees that he is committed to being here well beyond the terms of the covenant.  On a personal level, he will continue to play a supporting role in the philanthropic and political issues that he cares about,” the statement said.

White House Press Secretary Jay Carney issued a similar denial at a press briefing Tuesday when asked about the possibility of Corzine joining the administration.  Carney told reporters that he had no knowledge that Corzine was in line for any government job.

The clause would apply to “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,” which covers the remainder of Obama’s current term and the first six months of the next presidential term.

MF Global addresses Corzine departure flap