The SPAC bubble sweeping across U.S. capital markets continues to catch the attention of the U.S. Securities and Exchange Commission (SEC).
Reuters reports the SEC has sent letters to top Wall Street banks about blank check acquisition schemes. The agency is inquiring how underwriters control the risks associated with taking a company public via a SPAC. The letters are requesting information voluntarily.
Sources told Reuters the letters could be a precursor to a formal investigation into SPAC mania. If one needs to be reminded amount of SPAC volumes over the last 16 months, take a look at the chart below. And the average deal size has increased since the start of the year...
http://www.zerohedge.com/markets/sec-opens-probe-wall-streets-spac-mania?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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