SPAC dealings poser

Close watch: The US Securities and Exchange Commission (SEC) headquarters in Washington. The SEC recently sent letters to Wall Street banks seeking information on their SPAC dealings. — Reuters

WASHINGTON: The US securities regulator has opened an inquiry into Wall Street’s blank cheque acquisition frenzy and is seeking information on how underwriters are managing the risks involved, said four people with direct knowledge of the matter.

The US Securities and Exchange Commission (SEC) in recent days sent letters to Wall Street banks seeking information on their special purpose acquisition company, or SPAC, dealings, the four people said.