Global Banks Flee the Monster SPAC Market They Helped Create
- Goldman, Bank of America pull out of some blank-check firms
- SPAC craze has faltered on new SEC rules, souring sentiment
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Just a few years after banks helped create a gargantuan market for blank-check companies, they’re pulling away from the deals, afraid of the risks.
Goldman Sachs Group Inc. is ending its involvement with most of the special purpose acquisition companies it took public and pausing new U.S. SPAC issuance, Bloomberg reported on Monday. Bank of America Corp. scaled back work with some SPACs and could retreat further as it evaluates its policies surrounding the deals, people familiar with the matter said.