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Fraud*
According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Occupy Wall Street News

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Monday, October 8, 2012

Revolving Door: New Goldman Sachs Guy, Andrew J. Donohue

Andrew Donohue went from Merrill Lynch Investment Managers to the US Security and Exchange Commission (SEC) where he worked from May 2006 to November 2010.  Now Donohue is moving back to Wall Street to Goldman Sachs as managing director and general counsel.

There must be a way to insulate regulatory bodies like the SEC from the constant influence of Wall Street and Goldman Sachs.  That is where the changes in the financial system should be concentrated.  As long as the revolving door includes the special interests of Wall Street proceeding in and out of regulatory bodies, there will be conflicts of interest.

Andrew Donohue expressed his personal views on investment company regulations when he appeared before the Subcommittee on Capital Markets and Government Sponsored Entities in June 2011.  There he talked about changes that have been made and future changes that could be made to SEC rules.

He believes that an asset manager "does not pose a threat to the financial stability of the United States" (p.9).  He warns that derivatives and other complex financial instruments need a regulation regime of their own and should not depend solely on old rules dating back to 1940.  He said the SEC needs the resources to properly carry out its regulatory functions.

See the article called Street Moves:  Goldman Hires Ex-SEC Investment Management Directory by Dow Jones in Fox Business.

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