NEW YORK (Reuters Breakingviews) – Accurate views on global finance in the Covid-19 era.
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ALONE … THERE’S MORE. The U.S. Securities and Exchange Commission is seizing construction companies for a specific purpose. The group warned investors on Wednesday that they should be wary of celebrity-backed SPACs, noting that “investing in SPAC is not at all useful simply because a celebrity supporting or investing in it. “That goes for vehicles backed by well-known professional investors, too,” the SEC said.
Such former house spokesman Paul Ryan and Gary Cohn, former Goldman Sachs banker and adviser to President Donald Trump, may strengthen their ties with land deals. But it’s not so clear what, say, big player Alex Rodriguez will bring to the table. In all cases, addressing a SPAC that makes a contract does not mean that it is a good deal. The incentives can encourage SPAC sponsors to buy just about anything, at just any price.
Like a friend who warns against dialing a number 1-800 at midnight to buy a George Foreman grille, the SEC warning is worth feeding. (By Lauren Silva Laughlin)
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