Some of the excess in stock market valuations caused by a rush toward new capital market activities will naturally “flush out,” according to Goldman Sachs CEO David Solomon, CNBC reports.
Earlier, his predecessor at the helm of the Wall Street giant, Lloyd Blankfein, had cautioned that a windfall of SPACs could backfire for investors. He suggested that such vehicles circumvent the usual due diligence guardrails of a normal IPO process.
Speaking on a CNBC-moderated panel at the virtual Davos Agenda summit, Solomon said that while there was potential for new capital market activities to cause higher volatility and some excess, the situation should not be called a “crisis.” Read more.
