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SPAC Investment Returns Don’t Match ‘Hype,’ SEC Chief Says

  • Acting Chair Lee says agency taking close look at disclosures
  • She says regulator concerned amid unprecedented issuance
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U.S. regulators are growing concerned that risks posed to shareholders from blank-check companies are getting increasingly dangerous as the SPAC bubble inflates to unprecedented levels.

“Lately, we have seen more and more evidence on the risk side of the equation for SPACs as we see studies showing that their performance for most investors doesn’t match the hype,” Acting Securities and Exchange Commission Chair Allison Herren Lee said Thursday.