The fees US banks earn from SPACs have plunged in the past two months, disrupting what had been a main profit generator on Wall Street, the Financial Times reports.
Investment banks made a little over $430 million from IPOs of SPACs and mergers between SPACs and private companies in April and May, according to data from Refinitiv. That accounted for 4.5 percent of overall investment banking fees for the period. By comparison, in January and February, SPACs accounted for 22.5 percent of revenues and brought banks almost $3 billion in fees — the two most active months ever for the sector. Read more.
