A U.S. Senator is stepping up the pressure on SPACs as an investment vehicle to take companies public. Here’s what the SPAC Accountability Act of 2022 is all about.
What Happened: A new bill called SPAC Accountability Act of 2022 is being proposed by Democratic Senator Elizabeth Warren.
A report tied to the bill is set to be released Tuesday, according to Reuters. The report will lay out how SPACs have led to a “proliferation” of bad deals and losses for investors as a result.
Under the bill, the legal liability would increase for SPACs, with calls for enhanced investor disclosures and lock up periods being extended for investors who sponsor or help finance the mergers. The bill would include SPAC sponsors and board members and …
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