Wall Street Banks Anticipate SEC Inquiries Into SPAC Market

  • Review could become more formal depending on SEC findings
  • Shares of blank-check companies drop in wake of report

Photographer: Saul Loeb/AFP/Getty Images

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Wall Street’s biggest banks are expecting the U.S. Securities and Exchange Commission to step up its oversight of the red-hot SPACs market.

Officials at major firms are anticipating letters from regulators asking about the potential dangers of underwriting a deluge of deals from so-called blank-check companies, according to two people familiar with the matter.