The fraud charges leveled against Goldman Sachs on Friday are—or more accurately, could be—a pivotal moment as the United States continues its long, slow extrication from the financial crisis. The 22-page complaint filed by the Securities and Exchange Commission is almost too painful to read, filled with damning e-mail excerpts and fact patterns sure to make any legal department retch. The SEC has stabbed at the very heart of Wall Street, with an accusation that resonates from Main Street to Washington and all points in between. Compliance officers would do well to consider it carefully, because the mistakes Goldman stands accused of making carry lessons for you all.
