- Sen. Elizabeth Warren asked the Securities and Exchange Commission to investigate a planned SPAC deal involving former President Donald Trump.
- Warren noted recent news reports that Digital World Acquisition Corp., which plans to merge with Trump's new social media company, "may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021."
- The Massachusetts Democrat said she is concerned "about the misaligned incentives underlying SPAC deals,2 which are often structured to exploit retail investors to the benefit of large institutional investors such as hedge funds, venture capital insiders, and investment banks."
Sen. Elizabeth Warren on Thursday asked the Securities and Exchange Commission to investigate a planned SPAC deal involving former President Donald Trump.
Warren, a Massachusetts Democrat, in a letter to SEC Chairman Gary Gensler noted recent news reports that Digital World Acquisition Corp., which last month announced plans to merge with Trump's new social media company, "may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information [SEC) filing and other public statements."
The SEC did not immediately respond to CNBC's request for comment.
– Additional reporting by CNBC's Thomas Franck
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