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
- SEC is seeking information on fees, volumes,
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 😉 )