Citigroup, supposedly one of the most sophisticated financial institutions in the world, now has $3B at risk in unsecured loans to Enron. Unfortunately we are witnessing corporate financial fraud on a grand scale. My (somewhat educated) guess is that some Enron officers, especially the CFO, and accountants at Arthur Andersen are guilty as hell and will be going away for longer than Milken did.
A more interesting note, IMO: Citigroup is Enron's largest unsecured creditor and joe loserman's largest contributor. There is a serious ethical conflict here. Loserman can have significant influence on casting blame and determining just how much of its $3B investment Citigroup ultimately loses. Any bets on whether he recuses himself? I didn't think so.