SPACs are booming 'at the expense of retail investors', and regulators should take these 5 steps to fix the market, think tanks say
Summary List Placement As SPAC mania continues in 2021, drawing big name investors and pop culture icons, there are some who believe retail investors trying to cash in on the craze are getting a raw deal.
In February, Americans for Financial Reform and the Consumer Federation of America sent a letter to the House Financial Services Committee detailing concerns over the boom among special purpose acquisition companies.
The letter, addressed to Chairwoman Maxine Waters, said that the boom in SPACs is "fueled by conflicts of interest and compensation to corporate insiders at the expense of retail investors."
It also suggested an attempt by sponsors and their targets "to end-run longstanding rules designed to promote fair and efficient markets."
SPACs have been around for decades, yet they have rocketed to prominence last year and in 2021, touted as a faster and cheaper alternative for companies to go public compared to the traditional IPO.
In the first two months of 2021 alone, 175 SPACs have gone public...
The last Posts from Business Insider
- Janine Yorio just launched a fund that lets investors buy virtual land. She shares how her firm chooses which plots to offer - and breaks down the 3 most important elements of investing in digital real estate
- 'Volatility is your friend': A former Goldman Sachs hedge-fund boss says crypto investors should embrace bitcoin's wild price swings - and explains why it's one of the asset's key features
- The CEO of Hinge predicts a boom in people looking for long-term relationships this summer
- Trump wants you to start calling it the 'Trumpcine' instead of the COVID-19 vaccine, report says
- Americans unleashing pent-up savings could drive up inflation and rattle parts of the market, JPMorgan's chief strategist says
- David Hogg is giving up pillow entrepreneurship and returning to gun-control activism. His company Good Pillow aimed to rival the MyPillow brand
- Matt Gaetz thought he could 'do what he wanted' with women's nudes, a colleague said. That's not how it works
- Google's secretive 'Project Bernanke' reportedly used data from outside advertisers to benefit the search giant's own ad system
- A GOP congressman said so many Republican voters now believe in the QAnon conspiracy theory it could destroy the party
- I research and write about scams - but still fell for a dangerous Google Voice one. This is how it works and how to avoid it
- The American Library Association has published its list of the most-challenged or banned books in 2020. They include stories about racism and racial justice
- Amazon denies intimidating employees in its official response to the failed union election in Alabama
- Former GOP House Speaker John Boehner says he doesn't think Ronald Reagan could get elected in today's Republican Party
- Vice President Mike Pence pleaded with the acting defense secretary to 'clear the Capitol' as pro-Trump rioters overran the building, report says
- Sports and other large outdoor events are finally returning but experts say they shouldn't be an 'unregulated free-for-all'
- Personal data of 1.3 million Clubhouse users has reportedly leaked online days after LinkedIn and Facebook also suffered data breaches
- Here's what we know about the 2 prominent lawyers Rep. Matt Gaetz hired in federal sex-trafficking probe
- 'I'm not going anywhere': Matt Gaetz defiant in Florida speech after House Ethics Committee opens investigation
- Acceptance rates at elite colleges hit a record low as students face cancelled college entrance exams and online learning difficulties
- Texas Rep. Dan Crenshaw said he'll be 'essentially blind' for a month after emergency eye surgery
Stephen Curry scores 38 points, Warriors beat Rockets
SAN FRANCISCO - Stephen Curry scored 23 of his 38 points in the third quarter and the Golden State Warriors withstood another injury to rookie James Wiseman to beat the Houston... Read more ...
Irving, Schroder thrown out of Lakers-Nets game
NEW YORK - Kyrie Irving and Dennis Schroder were thrown out in the third quarter Saturday night, taking even more star power from a matchup between the Nets and Lakers that was... Read more ...
Week ahead: 3 stories to watch
A helicopter on Mars is taking flight, a second anniversary marks the devastating fire at Notre Dame Cathedral and leaders for Japan and the U.S. meet. Read more ...
Mom arrested after 3 young kids found slain in LA apartment
A mom was arrested Saturday after her three young children - including a 6-month old baby - were found stabbed to death inside their Los Angeles apartment, police and local... Read more ...
Finau gets a call during Masters delay, from Tom Brady
AUGUSTA, Ga. - Cell phones are almost entirely forbidden at Augusta National, so imagine Tony Finau's surprise Saturday when he got told during a weather delay that someone... Read more ...
Kevin Holland pitches Marvin Vettori vs. Derek Brunson since they 'hump so well'
Kevin Holland suffered his second UFC main event loss in a 21-day span on Saturday, and both defeats came through similar means. Just three weeks after losing a unanimous... Read more ...
Alex Rodriguez, Marc Lore negotiating deal to buy Timberwolves from owner...
Rodriguez and Lore signed a letter of intent on Saturday and now hold a 30-day window to try to finalize a deal with Taylor. Read more ...
Ramsey Clark, attorney general under Johnson, dies at 93
NEW YORK - Ramsey Clark, the attorney general in the Johnson administration who became an outspoken activist for unpopular causes and a harsh critic of U.S. policy, has died... Read more ...
Laureano's 2-run shot gives Athletics 7-3 win over Astros
HOUSTON - Ramón Laureano hit a two-run homer, rookie Seth Brown connected for his first big league home run and the Oakland Athletics beat the Houston Astros 7-3 to win the series. Read more ...
Bank error in your favor? Lawsuit says no for woman accused of refusing to...
A former sheriff's dispatcher has been arrested and accused of refusing to return more than $1.2 million that had been accidentally deposited into her account, authorities said. Read more ...