Several readers see an Enron like situation in the real estate business. "As most know, yesterday former Enron executives Ken Lay and Jeff Skilling were convicted of fraud. Regular readers of this blog know about reports of illegal activity in the world of Real Estate, such as appraisal and lender fraud."

"Also, based on a OFHEO report released earlier this week, governance at Fannie Mae appears to be a bit shaky. My question to my fellow bloggers is: Will such a high profile conviction put the ‘Fear of Jesus’ into unethical/dishonest appraisers, loan officers and other officials involved in the real estate/industrial complex? Or, will business continue as usual?"

A reply, "Very interesting, as Fannie pressured congress into investigating OFHEO through their purchased reps. If they pressed that hard, I do not want to imagine what OFHEO dared not investigate!"

Another, "It WOULD be interesting to know more about the background/history of the FNM fiasco. Pretty nervy to want OFHEO investigated. I’m wondering which side different congressmen have fallen on over this issue in the past several years."

One saw others involved, "Don’t forget borrower fraud, e.g., stated income? The mortgage insurance companies are going to lobby government for the FB’s to be dragged before a judge for their greedy ways."

One restated the topic, "Will The RE Fraud Eclipse Enron and Worldcom? I have a feeling that there is a lot of fraud by the FBs, lenders, realtors, appraisers, title companies, hedge funds, and organized crime. How much fraud is out there?"

Another made a comparison to the 80's. "A veteran of the FDIC/RTC 1980s-1990s fiasco here. Been there, seen that, done it all, but something tells me that we’re going to see new and improved scams this time involving foreigners, illegal aliens, 20 people in a house and god only knows what else. Should make for very entertaining Congressional hearings, magazine articles, etc. not to mention beaucoup bargain for the patient down the line. We’re en route at the moment btw."

The Christian Science Monitor. "When a company chartered by Congress to help finance affordable housing for lower-income Americans cooks its books to line the pockets of its managers, one might hope Congress would seek quick reform. It's worth asking why it hasn't."

"A sudden meltdown of this 'government sponsored enterprise,' as former Federal Reserve chief Alan Greenspan warned, could bring down America's financial markets, dwarfing the impact of Enron's collapse, and require billions in tax dollars to clean up the mess."

"Scaling back Fannie, improving its oversight, altering its governing board, and other such steps are fine. But more root-and-branch reforms will be needed."

The Associated Press. "While the federal government has garnered its biggest victory from the business scandals of recent years with the conviction of former Enron Corp. chiefs Kenneth Lay and Jeffrey Skilling, prosecutors could have their sights on a new crop of potential targets.'

"Regarding Fannie Mae, the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight are looking at the roles of several current and former executives, including ousted Chairman Franklin Raines, in the accounting failures and whether they should be forced to return millions in compensation."

"A criminal investigation of the company by the Justice Department is continuing."