By Andrew Ross Sorkin, Jason Karaian, Michael J de la Merced, Lauren Hirsch and Ephrat Livni

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There’s a new saying on Wall Street, Andrew writes in his latest column It’s Not Good Taste, but it captures the new trend that is changing the financial world: “I know more people who have SPAC than I do Covid “, financier Andrew keep telling (we warned you)

The blank check corporate boom shows no signs of slowing down SPACs – or special-purpose acquisition companies – raised nearly $ 26 billion in January, a monthly record in a blazing market.These listed Shell companies exist solely to find a private company to buy and publicize SPACs typically achieve a goal that is about five times their size: with more than 300 such funds currently running around $ 100 billion in cash, that translates to $ 500 billion in financial firepower

“Every friend starts a SPAC,” billionaire fund manager Bill Ackman told Andrew. “It’s like, ‘Oh yeah, I have a'” Mr. Ackman’s SPAC is the largest, raising $ 4 billion last year (He has not yet named an acquisition target) Other financiers who are investing in the SPAC are the tech investor Chamath Palihapitiya, the experienced banker Michael Klein and the buyout specialist Alec Gores, all of whom have several SPACsF.L. Quarterback Colin Kaepernick registered his own SPAC on

“As a guy doing business in the market in 1999, it feels the same as it did then,” said Terence Kawaja, founder of boutique bank Luma Partners (who worked as a banker on the sale of Time Warner to AOL) “I’m concerned about public investors” There are several misaligned incentives between the sponsors who raise the initial capital of a SPAC and the investors who come later, especially after buying a company:

Sponsors often claim to have invested in the business of a SPAC to bring them in line with other investors. But they also get large stakes essentially free of charge, as Andrew writes, “They partially play with house money”

Large mainstream investors who put money into a SPAC deal often get favorable terms that guarantee them a modest but predictable return no matter what

Sponsors owe investors no fiduciary duty on acquisition targets, and few seek fairness opinions to confirm the price they have paid

SPACs generally need to use the money raised on an acquisition or return it within two years to motivate them to close a deal, rather than a good one

That doesn’t mean I’m traditional P.Ös are better, as Andrew explains (speed and security make SPACs more attractive to many of the acquired companies) Some sponsors are developing ways to make SPACs friendlier for all investors

President Biden meets with CE.Ös to Advance His Stimulus Plan The leaders from Gap, JP Morgan Chase, Lowe, and Walmart met with Mr. Biden to discuss his $ 1 9 trillion proposal and effort to raise the minimum wage to $ 15 an hour

Day 1 of impeachment trial The Senate voted 56-44 that the trial was constitutional after Democratic House impeachment executives played disturbing highlights from January 6 Capitol Riots Former President Donald Trump accused of violence Having instigated is said to be furious at the meandering defense of his legal team

A real estate giant might be trying to connect with Mr. Trump’s Vornado business is said to be considering buying up the Trump Organization’s stake in joint office towers in Manhattan and San Francisco, according to The Wall Street Journal. Vornado’s boss, Steve Roth, reportedly believes potential buyers are likely to have potential buyers because of the connection with Mr. Trump

Salesforce enables permanent remote work The software giant leaves most of its 54000 employees work from home at least two days a week, some full-time. This could change San Francisco, where Salesforce is by far the largest employer

Huawei questions its status as a national security threat The Chinese telecommunications giant filed a lawsuit in the US Court of Appeal for the fifth circuit to review an F.C.C. The decision passed by the Trump administration in December prevents the sale of devices to American companies

The US. The Chamber of Commerce has named Suzanne Clark the new C.Ö She replaces Tom Donohue after his 22-year run and is the first woman to head the chamber in its 109-year history. The Times was the first to speak to Ms. Clark about her plans for the largest lobby group in the country >

“The Chamber has a unified economic agenda and we will work with anyone who wants to move it forward,” said Ms. Said Clark. This may be easier said than done as the group worked closely with the Republican for much of its predecessor’s tenure Party Connected Their greatest challenge might be to reconcile the Republicans dismayed by the group’s new allies and the Democrats they have historically viewed as antagonists

After joining the Chamber in 1997, Dr Clark left the Potomac Research Group and the National Journal Group in 2007. She returned in 2014 and was promoted to president in 2019.She also sits on two company boards

She takes over as business rethinks its relationship with politics, takes up social issues and re-evaluates the impact of political donations, especially after the Capitol uprising MS Clark has already pushed for the Chamber’s platform to be modernized and focused on issues like the Bridging the Racist Prosperity Gap and Combating Climate Change Focused Yet many basic principles remain the same: Raise the federal minimum wage to $ 15 an hour and reverse Trump’s corporate tax cuts

Ms. Clark said companies should strike a balance between the bottom line and their role in society, “Part of our job is helping a company get good results It’s an advocacy job where we say we want to create the right conditions for job makers to thrive, “she said.” But the other part of our job is helping companies do good, whether that’s good E is”S.G, whether this is equal opportunities, whether this finds out one of the problems that CE.Ös are increasingly encouraged to talk about ”

Is it over? GameStop’s stock is down 86 percent from the peak at the height of the meme stock madness. In terms of market cap, the decline has reduced the retailer’s value by about $ 20 billion when the boom-and-bust pattern is similarly for AMC, Bed Bath & Beyond and other companies caught in the seemingly short-lived frenzy

As the pandemic pounds the commercial real estate markets in London and New York City, landlords see their traditional power wane, with some calling for a revision of rental laws

London landlords have been forced to take their tenants on breaks, The Times’ Eshe Nelson writes concessions include rental vacations and leases where tenants pay lower base rents but add a percentage of gross income.Some tenants have a voluntary corporate agreement that is one agreed bankruptcy filing in the US is similar to S.to achieve better conditions

There are still big challenges, says Eshe: “There are a lot more companies wondering how to pay month-long rent that has built up with the doors closed in the UK this is pretty urgent with the eviction moratorium in late March expires tenants and landlords have to find a sustainable way out “(reader: If you face this challenge, book a rental vacation, change your rental conditions or face foreclosure, contact us)

Big Tenants Are Pushing Back in New York, Condé Nast Keeps $ 2 In a dispute with landlords, One World Trade Center owed 4 million rents last month. New York landlords also offer several months of free rent and cash for Real estate improvements at

Cynthia Lummis is a rancher, libertarian, and the only known Senate Bitcoin holder.The Wyoming Republican, a vocal crypto supporter, saw an opportunity after Tesla’s $ 1.5 billion bitcoin investment hit the headlines this week: she asked Elon Musk Twitter asked whether he was considering moving to her home state and boasted that “there are the best laws on digital assets,” MS Lummis made the suggestion “because of the pioneering spirit we share,” she told DealBook / p>

“We cannot pretend this is a fad,” said Dr Lummis said she sits on the Senate Banking Committee, among other things, starting a financial innovation caucus where she’ll try to convince colleagues to go the way to Wyoming The state has signed crypto companies with fintech regulations that make it more attractive to settle there, the senator said Bitcoin investments from Tesla and other companies, as well as concerns about the dominance of Chinese fintech companies underscore the need for federal law, she said

“Congressional lack of fiscal discipline is responsible for the devaluation of our currency,” she explained of her interest in decentralized digital assets. “Debt dependency is decimating savers’ return on their hard-earned dollars,” she added before Ms. Her Senate seat in November won, Lummis was Wyoming’s state treasurer and served four terms in the House

Ms. Lummis declined to confirm the vote in the electoral college last month, so the crypto evangelist could face political opposition to her positions regardless of her merits

A plan to force the sale of TikToks US Operations on a group run by Oracle and Walmart can be suspended indefinitely by the Biden administration (WSJ)

Activist hedge fund manager Jeff Ubben is reportedly trying to raise up to $ 8 billion for a climate-focused mutual fund (Reuters)

Rivian, an electric vehicle maker backed by Amazon and Ford, is set to weigh an I.Ö this year (Bloomberg)

There is debate as to whether the meme stock trading mania was fueled by the Fed’s easy money policies – led by “JPOW,” as Fed Chairman Jay Powell is known on Message Boards (NYT) / p>

Robinhood has registered its new in-house lobbying team to focus on bills that could affect its business model, such as a proposal for a stock transaction tax (CNBC)

The game studio behind Cyberpunk 2077 said hackers had seized the source code for its top games and other confidential information (Business Insider)

Fox Corp. reported a surge in profits for Fox News, defending its flagship product despite $ 2.7 billion libel lawsuit and challenges from far-right news rivals (NYT)

Make sure to turn off the zoom filters for cartoons before an important meeting like a court hearing (NYT)

SPAC

World news – USA – The problems with SPACs

Source: https://www.nytimes.com/2021/02/10/business/dealbook/spacs-blank-check-deals.html