Wall Street Banks Anticipate SEC Inquiries Into SPAC Market

Wall Street’s biggest banks are expecting the U.S. Securities and Exchange Commission to step up its oversight of the red-hot SPACs market.

Officials at major firms are anticipating letters from regulators asking about the potential dangers of underwriting a deluge of deals from so-called blank-check companies, according to two people familiar with the matter.

For now, the inquiry appears to be mostly fact-finding, but it could turn into something more formal depending on what regulators uncover, one of the people said, asking not to be identified because the matter is private. Reuters previously reported the SEC’s inquiries into special purpose ...