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Citi Said to Pause New SPAC Issuance as SEC Signals Crackdown

April 4, 2022, 10:19 PM

Citigroup Inc. is among underwriters that have temporarily paused initial public offerings of new U.S. special purpose acquisition companies until they get more clarity on the potential legal risks posed by recently proposed rules, according to people with knowledge of the matter.

The New York-based bank is awaiting feedback from legal advisers regarding underwriter liability among other topics, said the people, who requested anonymity because the bank’s decision isn’t public. The firm has no plans to exit the business, some of the people said.

Last week, the Securities and Exchange Commission issued a sweeping plan for tightening oversight of SPACs ...