Latest news with #SPACs
Yahoo
5 hours ago
- Business
- Yahoo
SEC Staffers Fear DOGE Overreach Amid Push to Change Wall Street Policies
Officials from the Securities and Exchange Commission fear DOGE is exercising outsized power as they negotiate new regulations surrounding blank-check companies. According to Reuters, DOGE officials are now urging staff at the SEC to relax policies surrounding special-purpose acquisition companies. Sometimes known as a 'blank-check company,' a special-purpose acquisition company, or SPAC, is a shell company created to raise funds so its founder can acquire a private company, allowing them to take the private company public with fewer regulations. However, doing so also creates greater risks for investors, which the SEC policies surrounding SPACs were intended to mitigate. While SEC officials were already negotiating to change the regulations, anonymous staffers told Reuters they're concerned about DOGE's presence in these discussions. The SEC adopted new policies for regulating SPACs in the final months of the Biden Administration last year, requiring the companies to take on greater legal liability and disclose more data to allow the agency to better assess potential financial risks. The new regulations were unpopular among conservatives, who feared they were too restrictive. Just two weeks ago, the agency made a last-minute decision to delay implementing Biden's regulations amid negotiations with officials from the Nasdaq and the New York Stock Exchange to relax the rules. Still, DOGE's influence at the SEC has concerned some staffers, who spoke anonymously to Reuters and fear the government may be overstepping its bounds when it comes to regulating the SEC's operations. In theory, as an independent government agency, the SEC should have final rule-making authority when it comes to regulations of this kind. DOGE's reported push to relax SEC policies follows a February executive order from President Donald Trump instructing the agency to seek out government regulations that 'impose undue burdens on small business[es] and impede private enterprise and entrepreneurship.' More broadly, the move is also part of Elon Musk's larger philosophy behind DOGE: stimulating economic growth by slashing regulatory bodies. President Trump has also moved to restrict the autonomy of traditionally independent government agencies since the start of his second term. In another February executive order, the president gave himself the power to interfere with several agencies' budgets and the regulations they issue. Included in the order were the SEC, the Federal Elections Commission, and the National Labor Relations Board. The president's social media platform, Truth Social, was taken public via a SPAC. Reuters previously reported that officials from the Trump Media and Technology Group, which runs Truth Social, may be considering another SPAC acquisition related to cryptocurrency. A spokesperson from the SEC told Reuters that the agency was 'working with DOGE to find cost efficiencies and ensure public funds are being used as effectively as possible.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
8 hours ago
- Business
- Bloomberg
SEC's Atkins Says Agency Will Look at Rules on Blank-Check Firms
Securities and Exchange Commission Chairman Paul Atkins says the agency will examine rules that had increased oversight of US blank-check companies. Atkins told CNBC on Wednesday that the regulations for special purpose acquisition companies had been 'rather controversial' and that the SEC would review them.
Yahoo
12 hours ago
- Business
- Yahoo
‘Irrational Exuberance' Stock Gauge Sparks Fresh Bubble Worries
(Bloomberg) -- Wall Street speculators have returned in full force: US stocks have snapped back from the throes of April's tariff selloff, hovering near record highs, the pipeline of new SPACs is rebounding and Cathie Wood's flagship fund is on a historic tear. Struggling Downtowns Are Looking to Lure New Crowds Sprawl Is Still Not the Answer California Exempts Building Projects From Environmental Law What Gothenburg Got Out of Congestion Pricing That's sparked a swift jump in a Barclays Plc measure of the market's 'irrational exuberance' — a phrase coined by former Federal Reserve Chair Alan Greenspan for when prices exceed assets' fundamental values. The one-month average on the proprietary gauge has swung back into the double-digits for the first time since February — reaching levels that have signaled extreme frothiness in the past. The bank noted that the measure, which is calculated from derivatives metrics, volatility technicals and sentiment signals inferred from options markets, has historically averaged around 7%, but occasionally it peaks above 10% as during the Dotcom era of the late 1990s, and the meme-stock frenzy of 2021. The gauge currently sits around 10.7%, data compiled by Barclays show. 'Fundamentals have taken a back seat again as stocks with hot narratives are trading like lottery tickets,' said Dave Mazza, chief executive officer of Roundhill Investments. He points out sentiment gauges like relative strength readings and valuation multiples are once again looking extended. 'That sets the stage for a sharp air-pocket on the next bad headline.' Animal spirits have been revived on optimism that the US is making progress on reaching trade deals with key partners — or that President Donald Trump will at least postpone his July 9 tariff deadline. There's also speculation the Federal Reserve will cut interest rates. The upshot is that stocks set a record high on Friday for the first time since February. Frothy Signals Barclays sees abundant signs of froth, with listings of new blank-check companies in 2025 already surpassing the last two years combined. Meanwhile, Cathie Wood's ARK Innovation ETF (ARKK) — a proxy for profitless technology firms — posted one of its best rallies in history, second only to the post-Covid surge. In the second quarter, Bitcoin-linked firms rallied 78%, while quantum computing shares climbed 69% and meme stocks advanced 44% — all volatile corners where investors are betting on future returns that may not materialize. A basket of highly shorted securities rallied 29%. 'Elevated readings of the indicator suggest that investors may be overly exuberant, which could lead to increased market volatility,' said Stefano Pascale, head of US equity derivatives strategy at Barclays. Pascale described the exuberance measure, which the firm dubs its Equity Euphoria Indicator, as measuring the proportion of euphoric stocks within a universe of US equities that have liquid options. It correlates with other popular metrics that measure retail investing, such as the net debit position of margin accounts, which shows the amount of borrowed money for a trade. Despite elevated levels, Pascale argues that bubbles are difficult to time and can expand for extended periods before correcting. As such, he recommends riding the wave for now and hedging with options to curb potential losses if things go awry. --With assistance from Jan-Patrick Barnert. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too How to Steal a House America's Top Consumer-Sentiment Economist Is Worried China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
12 hours ago
- Business
- Bloomberg
‘Irrational Exuberance' Stock Gauge Sparks Fresh Bubble Worries
Wall Street speculators have returned in full force: US stocks have snapped back from the throes of April's tariff selloff, hovering near record highs, the pipeline of new SPACs is rebounding and Cathie Wood's flagship fund is on a historic tear. That's sparked a swift jump in a Barclays Plc measure of the market's 'irrational exuberance' — a phrase coined by former Federal Reserve Chair Alan Greenspan for when prices exceed assets' fundamental values. The one-month average on the proprietary gauge has swung back into the double-digits for the first time since February — reaching levels that have signaled extreme frothiness in the past.
Yahoo
a day ago
- Business
- Yahoo
DOGE's overhaul of SEC targets SPAC and private fund rules
-- The Department of Government Efficiency (DOGE) is pushing the U.S. Securities and Exchange Commission (SEC) to ease regulations on blank-check companies and private investment funds, according to a Reuters report on Tuesday. DOGE officials have recently requested meetings with SEC staff to discuss relaxing what some companies view as burdensome regulations. The discussions have focused on potentially reworking rules adopted during the Biden administration last year that govern Special Purpose Acquisition Companies (SPACs) and requirements for private investment advisers to confidentially report more data to regulators. This regulatory rollback effort is part of President Donald Trump's broader initiative to reduce government oversight to stimulate economic growth. The report indicates that DOGE's involvement in policy development has created tension with some SEC officials, who have expressed concerns about a White House initiative influencing the work of what has traditionally been viewed as an independent agency. White House spokesperson Taylor Rogers stated that DOGE was working with the SEC "to more efficiently maintain fair and orderly markets while protecting everyday investors." Rogers added that under Trump's leadership, SEC Chairman Paul Atkins would ensure the United States remains "the best and most secure place in the world to invest and do business." Related articles DOGE's overhaul of SEC targets SPAC and private fund rules BofA introduces the Top 10 U.S. Ideas for Q3 2025 Macau casino stocks soar as June gaming revenue beats expectations Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
