The SEC has opened an inquiry into Wall Street’s blank check acquisition frenzy and is seeking information on how underwriters are managing the risks involved, Reuters reports, citing four people with direct knowledge of the matter.
The SEC sent letters asking banks to provide information voluntarily about their SPAC dealings, and, as such, the request did not rise to the level of a formal investigative demand, two of the sources said. However, one of the sources said letters were sent by the SEC’s enforcement division, suggesting they may be a precursor to a formal investigation. Read more.
