SEC Drops Suit Against GSC Group Exec Over Risky CDO

Law360, New York (November 19, 2012, 8:35 PM EST) -- The U.S. Securities and Exchange Commission on Friday dropped its suit in New York federal court against a GSC Group Inc. executive accused of letting a hedge fund choose risky securities for a collateralized debt obligation that led to JPMorgan Chase & Co.'s $154 million settlement with regulators.

U.S. District Judge Miriam Goldman Cedarbaum signed off on the SEC's request to dismiss the case against Edward S. Steffelin, the head of the GSC team that prepared the offering documents for the $1.1 billion Squared CDO 2007-1....
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