SEC's SPAC Probe Focuses On Conflicts At Goldman, Morgan Stanley And Other Major Underwriters

zerohedge2021-07-15

As their performance slipped leaving legions of retail traders holding the bag (while 'SPAC King' Chamath Palihapitiya was rewarded for each deal with a juicy 'promote')the SEC launched an ...

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Comments

Alfred1007
2021-07-15
Alfred1007
It is a bit late but better than doing nothing
GohKS
2021-07-15
GohKS
Latest. Please like and comment. Thank you.
- Jsgoh28:
  Done
Zysel
2021-07-15
Zysel
Like pls
- fishcat:
  Done.. Pls Reply
kingkrimson
2021-07-15
kingkrimson
Shag
NicNg
2021-07-15
NicNg
Please like and thanks !

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The agency is trying to determine whether certain fee structures incentivize underwriters to work with SPACs even if their deals are \"unsuitable\" solely so they can reap fat fees on both sides of the deal. Such a structure would tend toward deals of a poorer quality, potentially putting unwitting retail investors \"at risk.\"\nBanks that have received requests for more information from the SEC include Citigroup, Credit Suisse Group, Morgan Stanley and Goldman Sachs - all of which do a considerable amount of SPAC business.\nIn addition to the banks, the SEC is also looking at the behavior of law firms, SPAC sponsors and others involved in troubled deals. In many cases, the SEC is requesting information from multiple parties regarding certain deals they have apparently deemed suspect.\n\n The SEC is particularly interested in the fees banks have earned when playing several roles on a deal, all three sources said. They declined to say which deals were under scrutiny.\"\n\n\n The big issue for the SEC is to understand if the advisers are conflicted,\" said one of the people.\n\n\n A spokesperson for the SEC did not respond to requests for comment.\n\nReuters says SPAC sponsors typically pay investment banks a hefty 5.5% fee for underwriting the IPO, part of which is paid up front, with the rest paid when a merger - or \"de-SPAC-ing\" - is completed. Banks can earn even more fees if they represent the merger target and help the SPAC sponsor raise money from the buy side (in common arrangements known as \"PIPE\"s - or Private Investment in Public Equity). The SEC is particularly interested on examples where banks are working on both sides of a transaction.\nThe SEC also wants to know more about how banks perform due diligence on these deals. The pressure is already prompting some banks to \"review their processes and increase due diligence\".","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":147015690,"gmtCreate":1626319422510,"gmtModify":1703757817197,"author":{"id":"3570656625926041","authorId":"3570656625926041","name":"Alfred1007","avatar":"https://static.tigerbbs.com/81d8406380cbc0525927f00a9510f2fa","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3570656625926041","idStr":"3570656625926041"},"htmlText":"It is a bit late but better than doing nothing","listText":"It is a bit late but better than doing nothing","text":"It is a bit late but better than doing nothing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/147015690","repostId":1115549167,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":144412384,"gmtCreate":1626309923448,"gmtModify":1703757533047,"author":{"id":"3555032609535572","authorId":"3555032609535572","name":"GohKS","avatar":"https://static.tigerbbs.com/ddc1a9348de7602d7224f258a5a3fa00","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3555032609535572","idStr":"3555032609535572"},"htmlText":"Latest. Please like and comment. Thank you.","listText":"Latest. Please like and comment. Thank you.","text":"Latest. Please like and comment. Thank you.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/144412384","repostId":1115549167,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5223620,"gmtCreate":1626310049567,"gmtModify":1663230984230,"authorId":3575601609818315,"author":{"id":3575601609818315,"idStr":"3575601609818315","authorId":3575601609818315,"name":"Jsgoh28","avatar":"https://static.tigerbbs.com/90196128a465db6b3437dd55043048f8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":144412384,"type":1,"supId":0,"prevId":0,"content":"Done","text":"Done","html":"Done"}],"langContent":"EN"},{"id":144437978,"gmtCreate":1626309631494,"gmtModify":1703757522640,"author":{"id":"4087126595314210","authorId":"4087126595314210","name":"Zysel","avatar":"https://static.tigerbbs.com/9b52da70718834ef5794c0812716f403","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4087126595314210","idStr":"4087126595314210"},"htmlText":"Like pls","listText":"Like pls","text":"Like pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/144437978","repostId":1115549167,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5223554,"gmtCreate":1626309772463,"gmtModify":1663230986458,"authorId":3583232381190474,"author":{"id":3583232381190474,"idStr":"3583232381190474","authorId":3583232381190474,"name":"fishcat","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":144437978,"type":1,"supId":0,"prevId":0,"content":"Done.. Pls Reply","text":"Done.. Pls Reply","html":"Done.. Pls Reply"}],"langContent":"EN"},{"id":144437034,"gmtCreate":1626309618528,"gmtModify":1703757521818,"author":{"id":"3546917904325897","authorId":"3546917904325897","name":"kingkrimson","avatar":"https://static.tigerbbs.com/87ba57a042ca932605a807e1701a8ceb","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3546917904325897","idStr":"3546917904325897"},"htmlText":"Shag","listText":"Shag","text":"Shag","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/144437034","repostId":1115549167,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":144435346,"gmtCreate":1626309532385,"gmtModify":1703757519020,"author":{"id":"3582026261569572","authorId":"3582026261569572","name":"NicNg","avatar":"https://static.tigerbbs.com/71eb77fb27db665fb403edf640e59617","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3582026261569572","idStr":"3582026261569572"},"htmlText":"Please like and thanks !","listText":"Please like and thanks !","text":"Please like and thanks !","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/144435346","repostId":1115549167,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":58,"commentSize":5,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1115549167"}