What connects Jay-Z, Donald Trump, Serena Williams, Richard Branson, Bill Gates and most American investment banks? They’ve all dipped their fingers in the big SPAC pie, reports efinancialcareers.
This March, the SEC proposed new rules for SPACs which would make it easier for investors to sue the investment banks underwriting the deals. As a result, Goldman Sachs is shrinking its SPAC business, Citi is taking a pause as it works with legal advisers to clarify the risks and Credit Suisse is also reviewing its exposure to SPACs following the proposed regulatory changes.
2021 was a record year for SPAC listings, but how much revenue did banks generate from the activity and how exposed are they to a potential sharp drop in SPAC deals?
The article includes further analysis and charts. Read more.
