Wall Street’s pullback from deals involving blank-check companies signals that major financial firms are concerned about the regulatory risks associated with the transactions, according to SEC Commission Chair Gary Gensler.
While Gensler declined to discuss specific firms, his comments about the once hot market come as Goldman Sachs Group, Bank of America and Citigroup are distancing themselves from deals involving SPACs. Concern about an SEC crackdown has prompted Goldman Sachs to pull out of most work on SPACs and Bank of America to end relationships with some of the vehicles, as reported this week. Read more.
