(Reuters) – Goldman Sachs Group Inc (NYSE 🙂 has decided to stop working with all blank-check cars it released publically, in fear of a regulatory crackdown that could affect what is one of the most popular Wall Street trends of recent years. Bloomberg Law reported Monday.

According to the report, sources with information said the bank told sponsors of SPACs that it was ending its involvement. (https://

According to one person cited by the report, the Wall Street giant will also stop working on SPAC issuances in the United States.

Goldman Sachs has not yet responded to a Reuters inquiry for comment.

The U.S. Securities and Exchange Commission released a draft rule in March that required SPACs disclose additional information about their sponsors, conflict of interest, and share dilution.

SPACs allow shell companies to raise money through a listing in order to merge with private businesses and make them public. This allows the target company to avoid the stricter regulatory oversight of an traditional initial public offer.