I happened to notice just how much Goldman would like you to remember that the counterparties allegedly being swindled in the Abacus deal were “professional investors”–an identifier they use five times in this release. And, in case you know and like someone who is a professional investor, they sometimes throw in an “institutional,” since you can’t possibly know one of those.
—The S.E.C. “brought a civil action against Goldman Sachs in relation to a single transaction in 2007 involving two professional institutional investors…”
—Two sentences later: “The core of the SEC’s case is based on the view that one of our employees misled these two professional investors…”
—A little further: “The SEC does not contend that the two professional institutional investors involved did not know what they were buying…”
—Even a parenthetical comparison of the professional investors’ respective stakes: “($951 million, with the other professional investor‘s exposure being $150 million)”
—And in case you forgot. “In summary, the SEC’s complaint is an issue of disclosure on a single transaction involving professional investors in a market in which they had extensive experience.”
Choire makes the same point over at The Awl.