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SPAC Kingpins Probed by Warren for ‘Misaligned Incentives’

  • Senator asks whether executives exploited regulatory loopholes
  • Other Democrats join her in sending letters to SPAC founders
Elizabeth Warren
Elizabeth WarrenPhotographer: Sarah Silbiger/Bloomberg
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Elizabeth Warren and other Senate Democrats are targeting some of the biggest names behind SPACs, questioning whether the once red-hot market will trigger outsized losses for retail investors.  

In letters to six prominent operators of special purpose acquisition companies, the lawmakers highlighted concerns that insiders can take advantage of regulatory loopholes at the expense of shareholders.