Adam Lashinsky: Another Wall Street fad has imploded. Not before it claimed its victims.

"Yet another Wall Street investment fad has crumbled, this time a dodgy technique for taking companies public called SPACs, or special purpose acquisition companies. As is often the case, regular investors and rank-and-file employees are the losers; hedge fund managers and investment bankers are the winners. Not for the last time, regulators are stepping in to quash snake-oil schemes they didn’t do enough to stop when it might have made a difference.

It's worth taking note of this debacle now because it won’t be the last time Wall Street hustlers separate unsuspecting investors from their savings. It’s just the latest."

#sec #SPAC #wallstreet #scam #pumpanddump #stocks #specialpurpose
https://www.washingtonpost.com/opinions/2024/02/20/spacs-sec-scam-trump

Another Wall Street fad has imploded. Not before it claimed its victims.

SPACs were always a dubious route to the stock market. Why didn’t the SEC step in sooner?

The Washington Post