There are many ways the SPAC boom could end unhappily, but government intervention probably isn’t one, Reuters reports. U.S. lawmakers held a hearing on Monday about SPACs, which House Financial Services Chairwoman Maxine Waters noted raised 462% more money in 2020 than the previous year. The takeaway: Politicians seem happy to let the experts work it out.
Prescriptions were few. Congressman Bill Foster raised the idea of a list of “safe” SPACs, but generally, lawmakers focused on how disclosures and liability compare with IPOs – something the SEC is already examining. Congress for once has identified a problem for which political grandstanding is not the solution. Read more.
