We reported recently that Obama’s ex-Goldman buddy, Jon Corzine the head of MF Global, seemed to have lost some $700 million. Problem was, MF Global seemed to have lost $700 million of their clients’ money. Which is a little odd, given that it’s illegal not to keep client money separate from the firm’s own accounts. Illegal as in tantamount-to-theft illegal.

And the story gets a little stranger still, because Reuters today reports that the shortfall at Corzine’s firm, MF Global, is now said to top some $1.2 billion. Which is a lot of money. And if the money was client money that should have been, and wasn’t, kept separate from the firm’s own money, then $1.2 billion is a lot of money to steal.

I’m hopeful that these rumors prove incorrect. If they turn out to be true, then this strongly worded view from Ann Bernhardt might have something going for it. These are dangerous times and MF Global’s collapse is hardly a confidence booster.