David Solomon’s Goldman Sachs is reducing its involvement with blank-check companies, a spokesperson for the bank said on Monday, as US regulators continue to clamp down on what was one of the hottest trends on Wall Street in recent years.
The boom in the special purpose acquisition company (SPACs) market had been a boon for Goldman’s investment banking business. However, tightening scrutiny from the US securities watchdog and saturated investor sentiment has led to a sharp decline in SPAC issuance.
‘Enforcement 40’ for 2020
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