U.S. SEC Opens Inquiry Into SPAC IPO Frenzy, Reuters Reports
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The U.S. Securities and Exchange Commission has started an inquiry into the blank check company frenzy that’s gripping Wall Street and is seeking information on how underwriters are managing the risks involved, Reuters reported.
The regulator has in recent days sent letters to Wall Street banks on their dealings with special purpose acquisition companies, the news agency reported, citing four unidentified people with direct knowledge of the matter. The inquiry is asking for voluntary information and isn’t at the level of a formal investigation, Reuters said.