Deals
BofA Scales Back on SPAC Work as Bank Retreat Accelerates
- Firm leaves some blank-check deals before so-called de-SPAC
- Move spurred by SEC guidelines that increase liability threats
Photographer: John Taggart/Bloomberg
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Bank of America Corp. scaled back work with some SPACs, part of a retreat by banks including Goldman Sachs Group Inc. and Citigroup Inc. from blank-check firms over concern about potential liability risks associated with the vehicles.
The Charlotte, North Carolina-based lender ended its relationships with some of the special purpose acquisition companies it helped take public while reviewing its policies for working with such vehicles, according to people familiar with the matter. The bank has been in discussions with clients on navigating the current environment and is continuing selective work with some deals, said the people, who asked not to be identified discussing private information.