SEC Focuses on Bank Fee Conflicts as it Steps-Up SPAC Inquiry: Report


The SEC has ramped-up its inquiry on Wall Street’s blank check acquisition frenzy, homing in on potential conflicts of interest created when banks act as underwriters and advisers on the same deal, Reuters reports, citing three people with direct knowledge of the matter.

The regulator is exploring whether certain fee structures may incentivise underwriters on SPAC listings to secure unsuitable deals when also advising on the later stage merger, potentially putting investors at risk, the people said.

Banks that have received SEC requests for information include top SPAC underwriters Citigroup, Credit Suisse, Morgan Stanley and Goldman Sachs, the sources said. Read more.

Related Posts