Reuters says the US SEC is opening an enquiry into SPACs, “blank check IPO frenzy”

Reuters cite unnamed sources, “four people with direct knowledge of the matter.”

  • Say that the US Securities and Exchange commission has opened an inquiry into
    blank-check IPO frenzy -sources
  • SEC sent letters to Wall Street banks last
    week seeking information on special purpose acquisition company or
    SPAC deals 
  • SEC is seeking information on fees, volumes,
    internal controls

One of the sources said letters were sent by the SEC’s enforcement division, suggesting they may be a precursor to a formal investigation.

SPACs are listed shell companies that raise funds to acquire a private company with the purpose of taking it public, allowing such targets to sidestep a traditional initial public offering.

(ps. I am aware its spelt ‘cheques’, thanks 😉  )

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