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True, it does represent a risk to the university - but a much smaller one than to the individuals, IMO. You weren't the only one to mention the possible cash outlay by the university but I personally think the damage done to the young men in question and to the reputations of these fraternities in particular and the Greek System in general is due a lack of understanding of the meaning of their ritual. If they lived it, these things would not happen - anywhere. And that's the more important thing - in my estimation.
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