US SEC official warns Wall Street of risks associated with blank-check companies

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 66%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

A U.S. markets watchdog official on Wednesday warned dealmakers in the frothy blank-check market to follow the regulatory demands associated with ...

A U.S. markets watchdog official on Wednesday warned dealmakers in the frothy blank-check market to follow the regulatory demands associated with special purpose acquisition companies, or SPACs, amid concerns over problems with the capital-raising scheme.

The acting chief accountant at the Securities and Exchange Commission , Paul Munter, urged market participants to be wise in how they select and disclose details of their dealings with SPACs."We encourage stakeholders to consider the risks, complexities, and challenges related to SPAC mergers, including careful consideration of whether the target company has a clear, comprehensive plan to be prepared to be a public company," he said in a statement.

SPACs have surged globally to a record US$170 billion this year, outstripping last year's total of US$157 billion, Refinitiv data showed. Wednesday's SEC statement comes after the agency sent letters to Wall Street banks seeking information on their SPAC dealings, Reuters reported https://www.reuters.com/article/usa-sec-spacs/exclusive-u-s-regulator-opens-inquiry-into-wall-streets-blank-check-ipo-frenzy-sources-idUSL1N2LM3CH last week.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Crypto market cap surges to record US$2 trillion, bitcoin at US$1.1 trillionThe cryptocurrency market capitalization hit an all-time peak of US$2 trillion on Monday, according to data and market trackers CoinGecko and ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Cryptocurrency market cap hits record US$2 trillion; bitcoin's at US$1.1 trillionThe cryptocurrency market capitalization hit an all-time peak of US$2 trillion on Monday, according to data and market trackers CoinGecko and ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Stocks gain, US short-dated debts under pressure after bumper US jobs dataGlobal stock prices rose to a 1 1/2-month high on Monday after data showing a surge in U.S. employment while short-dated U.S. bonds came under ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »