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> I wonder if any of the ringleaders of the SPAC boom and bust will ever face charges. Charges for what? SPACs are essentially a legal (operative word) pump-an
by dvt 3y ago
> I wonder if any of the ringleaders of the SPAC boom and bust will ever face charges.
Charges for what? SPACs are essentially a legal (operative word) pump-and-dump. We need legislation to fix this. But a lot of government insiders made off with millions as well, so is there incentive there?
- paxys 3y agoSPACs as a concept may be legal but there's a very large gray area around how individual ones were implemented/sold. There are already dozens of SPAC lawsuits making their way through various courts, and I don't think a larger federal-level investigation by the SEC or DoJ can just be written off as "SPACs are legal". IPOs are legal as well, but if a single investment bank was promising companies that it would use every trick in the book to pump and dump their worthless shares on retail investors, and did so hundreds of times, you can be pretty sure the feds would come down on them hard.
- Zigurd 3y agoThis is the key insight. You don't have to commit a gross violation, like using a patently illegal structure. But if all these SPAC offerings failed in a similar way, with the same parties repeatedly profiting from the same kinds of duff deals, with the same kinds of bag holders being sold the same line, there is a good chance they all skirted the law in similar ways.