US banks withdraw from special purpose acquisition companies

Just a few years after banks helped create a gargantuan market for blank-cheque companies, they’re pulling away from the deals due to fear of the risks.

“The SEC continues to spoil an already rather lame Spac party,” said Oliver Scharping, a portfolio manager at Bantleon. “There’s virtually no money to be made with new issuances right now.” And so far, it has put the brakes on for Wall Street’s biggest banks, with others expected to follow. Citigroup paused initial public offerings of new US Spacs until it gets more clarity on the potential legal risks posed by the guidelines, Bloomberg reported in April.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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

Business Maverick: Mega-consulate ties US to convicted billionaire in NigeriaBy placing its $537 million consulate on Gilbert Chagoury’s Eko Atlantic development, the US government became the anchor tenant for a project run by a man who was once convicted of laundering money for a Nigerian dictator and who’s admitted to making illegal campaign contributions in the US. Ethics groups and Nigeria experts aren’t pleased with the choice.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: US equity futures, stocks fall as dollar climbs: markets wrapUS equity futures and stocks fell anew on Monday and the dollar climbed as high inflation, monetary tightening and the prospect of an economic slowdown spurred another bout of risk aversion.
Source: dailymaverick - 🏆 3. / 84 Read more »