The SPAC party on Wall Street is flaming out about as fast as it began, CNN reports.
Increased scrutiny on the accounting methods used by SPACs, along with a series of PR headaches involving high-profile deals, threaten to stop the blank-check fad in its tracks.
SPAC activity has slowed dramatically in the past few months. Meanwhile, a series of high-profile accounting problems at electric vehicle startups Nikola and Lordstown Motors, both of which went public via blank-check deals, has led to increased skepticism from investors, analysts and regulators toward other companies using SPACs to go public. Read more.
