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The Fallacy of 'Fraud'

'Fraud' is a generic, vague accusation suggesting wrongdoing without specifying exactly what was done wrong—the very sort of legal vagueness that got Wall Street in trouble in the first place.

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Lloyd Blankfein (Tim Sloan, AFP / Getty Images)
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The SEC charging Goldman with securities fraud is like the Vatican charging a priest with venial sin. It is the most generic of accusations suggesting wrongdoing without precisely specifying the exact nature of what was wrong.

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