Mover Mike

The N.Y. Post asks a great question: WHY isn't TV news giving the Fannie Mae scandals the same level of coverage that it gave to Enron? In THE $30B SCANDAL THAT TV FORGOT

It has accounting errors of about $11 billion. That's more than 19 times larger than Enron's $567 million error. Fannie faces a Justice Department inquiry, an SEC investigation and an Office of Federal Housing Enterprise complaint.

The stock is down from $80 to $55 for another $20 Billion.

Just doing a LexisNexis search produced 3,017 hits for "Enron" — 1,385 hits on CNN alone. During that nine-month time period, Enron disclosed that it had overstated its earnings by $567 million since 1997.

A similar LexisNexis search was performed for the term "Fannie Mae" for those same media, from June 1, 2004, to March 1, 2005, again during the time the story was breaking. This search discovered a paltry 37 matches. Through those nine months, Fannie Mae was asked by its regulator to revamp its accounting practices, key executives resigned and about $11 billion in accounting errors were revealed.

I have written extensively about Troubled Companies, including AIG, GM, CITIGROUP, JPM, FNM, MBI, FLB, etc. as have other bloggers. If these companies fail, taxpayers will have a huge burden on our hands.

From the Washington Post this evening, More Trouble May Be Found at Fannie Mae

The accounting problems that have rocked Fannie Mae may run even deeper, the federal regulator overseeing the mortgage giant suggested Tuesday.

Uncertainty created by the accounting scandal at the biggest U.S. buyer of home mortgages has the potential of spilling into the housing industry and making mortgages less available for homebuyers, Armando Falcon said in an Associated Press interview.