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Goldman Is Pulling Out of Most SPACs Over Threat of Liability

  • Bank withdrawing from blank-check firms before they de-SPAC
  • Move spurred by SEC guidelines on underwriter responsibility
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Goldman Sachs to Pull Out of Most SPACs It Took Public

Goldman Sachs Group Inc. is pulling out of working with most SPACs it took public, spooked by new liability guidelines from regulators and throwing into doubt the fate of billions raised for those blank-check vehicles.

The Wall Street giant, the second-biggest underwriter of special purpose acquisition companies last year, has been telling sponsors of the vehicles it will be ending its involvement, according to people with knowledge of the matter. The bank is also electing to pause new U.S. SPAC issuance for now, one of the people said.