US Sen. Sherrod Brown (D-OH) questioned Securities and Exchange Commission (SEC) Chair, Gary Gensler, about Special Purpose Acquisition Companies (SPACs) and their impact on the market during a Senate Banking, Housing, and Urban Affairs Committee hearing Tuesday.
SPACs, also known as a "blank check company" are publicly traded corporations that have a sole purpose to merge with privately held businesses, enabling the latter to go public as well.
Brown referenced the Lordstown Motor Company (LMC) as an example of the affect SPACs have had in recent times. After the SEC announced an investigation into LMC in July, Brown wrote to the company's recently appointed Executive Chairwoman Angela Strand, asking for her to develop and share a plan for their reform and to work with the areas labor unions who have expertise in auto manufacturing.
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