Wall Street’s SPAC Gravy Train Jumps the Rails

Flying money

The fees US banks earn from SPACs have plunged in the past two months, disrupting what had been a main profit generator on Wall Street, the Financial Times reports.

Investment banks made a little over $430 million from IPOs of SPACs and mergers between SPACs and private companies in April and May, according to data from Refinitiv. That accounted for 4.5 percent of overall investment banking fees for the period. By comparison, in January and February, SPACs accounted for 22.5 percent of revenues and brought banks almost $3 billion in fees — the two most active months ever for the sector. Read more.

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NYSE Proposal Would Extend SPAC Listings for Additional 6 Months

Under current rules, the NYSE will “promptly commence delisting procedures” for any listed SPAC that fails to complete its de-SPAC merger within the shorter of three years or the time period specified by its constitutive documents or by contract — even if the listed SPAC has entered into a definitive de-SPAC agreement within three years of its listing date.