{"id":210520,"date":"2021-03-25T11:49:00","date_gmt":"2021-03-25T08:49:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-cracks-opens-probe-into-blank-check-company-ipo-mania-report\/"},"modified":"2021-03-25T11:49:00","modified_gmt":"2021-03-25T08:49:00","slug":"sec-cracks-opens-probe-into-blank-check-company-ipo-mania-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-cracks-opens-probe-into-blank-check-company-ipo-mania-report\/","title":{"rendered":"#\n  SEC cracks opens probe into blank-check company IPO mania: report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3707d40108b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3707d40108b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-cracks-opens-probe-into-blank-check-company-ipo-mania-report\/#Inquiry_letters_reportedly_sent_to_several_Wall_Street_banks\" >Inquiry letters reportedly sent to several Wall Street banks<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-cracks-opens-probe-into-blank-check-company-ipo-mania-report\/#Barbara_Kollmeyer\" >Barbara Kollmeyer<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  SEC cracks opens probe into blank-check company IPO mania: report<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Inquiry_letters_reportedly_sent_to_several_Wall_Street_banks\"><\/span>\n  Inquiry letters reportedly sent to several Wall Street banks<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000210404\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       The Securities and Exchange Commission (SEC) may be at the start of a probe into the investor mania surrounding special-purpose acquisition companies (SPACs), starting with Wall Street banks, Reuters reported on Thursday. <\/p>\n<p> The independent\u00a0federal government regulatory agency has sent letters to those financial institutions, asking for information on their individual SPACs, or blank check companies, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/article\/us-usa-sec-spacs-exclusive\/exclusive-u-s-regulator-opens-inquiry-into-wall-streets-blank-check-ipo-frenzy-sources-idUSKBN2BH09F?il=0\" class=\"icon none\">the report said<\/a>, citing sources. Deal fees, volumes, internal controls and compliance are some of the information the SEC was seeking, it said.<\/p>\n<div class=\"paywall\">\n       MarketWatch has reached out to the SEC for comment. <\/p>\n<p>SPACs are shell companies that raise money through initial public offerings, with the aim of using those funds to acquire a privately held company and create a new, publicly traded entity. Companies such as zero-emissions truck maker Nikola<br \/>\n        NKLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208704275\/composite\" class=\"negative\">-6.27%<\/bg-quote><br \/>\n       and sports betting operator DraftKings<br \/>\n        DKNG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/213120645\/composite\" class=\"negative\">-4.47%<\/bg-quote><br \/>\n       were both born of high-profile SPAC mergers. <\/p>\n<p>The popularity of SPACs has grown in the past year or so, with celebrities such as former baseball star Alex Rodriguez among those jumping aboard. According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.spacanalytics.com\/\" class=\"icon none\">SPAC Analytics<\/a>, there have been 294 such IPOs this year so far, from 59 in 2019.<\/p>\n<p>The SEC raised a yellow flag over the blank-check companies earlier this month via an investor alert that said \u201cit is never a good idea to invest in a SPAC just because someone famous sponsors or invests in it or says it is a good investment.\u201d<\/p>\n<p>Highlighting risks relative to traditional IPOs, the SEC pointed out that SPAC sponsors typically buy equity in the company at more favorable terms than the public will get.  <\/p>\n<p>It is unclear whether any fresh inquiry from the SEC will turn into a formal one. Two of the sources told Reuters that as the banks were asked to voluntarily furnish information, it wasn\u2019t an official probe, but another source said the letters could mark the start of one. <\/p>\n<p><strong>Opinion:<\/strong>\u00a0This SPAC with ties to NASA plans to make daily runs to space<\/p>\n<p>One sign of \u201cpeak SPAC\u201d may be office-space sharing startup WeWork, which <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/03\/23\/wework-reportedly-discloses-3point2-billion-loss-in-2020-as-it-seeks-a-spac-deal.html\" class=\"icon none\">reportedly lost $3.2 billion last year<\/a>, yet is seeking a SPAC listing with a valuation of $9 billion, said Jeffrey Halley, senior market analyst at Oanda, in a note to clients on Thursday.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cYou remember, it\u2019s the serviced office company with ping-pong tables that all those clever finance people thought was worth $50 billion less than two years ago,\u201d he said. \u201c30+ years of gnarled existence as a pilot fish in the financial markets has imbued an \u2018if it\u2019s too good to be true, it always is\u2019 mind-set on me. SPAC-mania fits that bill nicely.\u201d <\/p>\n<p>Berkshire Hathaway\u2019s<br \/>\n        BRK.A,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208872451\/composite\" class=\"positive\">+0.15%<\/bg-quote><\/p>\n<p>        BRK.A,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208872451\/composite\" class=\"positive\">+0.15%<\/bg-quote><br \/>\n       vice chairman and famed investor Charlie Munger likened SPACs to \u201ccrazy speculation,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=cP8ap47seKw\" class=\"icon none\">in comments he made last month<\/a>.<\/p>\n<p>Some argue that SPACs can make good investments, but it pays to be selective, such as picking those that are sponsored by investors who manage a lot of money or sponsors with solid track records.<\/p>\n<p> <strong>Opinion:<\/strong>\u00a0Why the smartest stock investors are passing on most SPAC IPOs<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Barbara Kollmeyer\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Barbara_Kollmeyer\"><\/span>Barbara Kollmeyer<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=21005575-02D4-D4B5-4572-D335E4635C4E&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# SEC cracks opens probe into blank-check company IPO mania: report &#8221; Inquiry letters reportedly sent to several Wall Street banks The Securities and Exchange Commission (SEC) may be at the start of a probe into the investor mania surrounding special-purpose acquisition companies (SPACs), starting with Wall Street banks, Reuters reported on Thursday. The independent\u00a0federal&#8230;<\/p>\n","protected":false},"author":1,"featured_media":183321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-210520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/210520","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=210520"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/210520\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/183321"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=210520"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=210520"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=210520"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}