Bite-Sized Business Law

The Corporate Law Center at Fordham University School of Law
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Feb 28, 2023 • 27min

Maria Charon on SPACs

The rise and fall of SPACs, or Special Purpose Acquisition Companies, is a trending topic in legal and financial conversations. Why were they so attractive, and what caused some to come grinding to a halt? Today we talk about what the heck happened to SPACs! Here with us on the Bite Sized Business Law Podcast is Maria Charon. She is a corporate lawyer who started her career at renowned Wall Street law firm, Sullivan & Cromwell. Most recently, Maria has been part of a SPAC management group. Maria talks us through what a SPAC is, why they’re seemingly attractive, and what a de-SPAC merger is. She shares specifics on how SPACs function, what investors can expect, and we speculate on the effects of pending regulations from the SEC. We discuss the similarities of the SPAC trend with other past trends like the dot-com bubble and the crypto-craze and the future of the SPAC market. For all this, and more, don’t miss this informative conversation with Maria Charon.Key Points From This Episode:A quick introduction to our guest, Maria Charon.A definition for ‘SPAC’ which can also be referred to as a Blank Check Company.Maria explains why SPACs were so attractive when they first “came on the scene.”What a de-SPAC merger is.How to gain enough information to discern whether to invest or not.How SPAC investors can redeem their investments.Why SPACs came to a grinding halt.How the threat of regulation affected the SPAC market.What happens to failed SPACs.Maria explains more about SPAC sponsors and their roles.We compare the SPAC trend with other past trends (dot-com bubble and crypto-craze).How a good economy engenders a highly speculative instrument like a SPAC.The future of SPACs.Comparing SPACs to the IPO model.The nature of SPACs and the relationship between sponsor groups and retail investors.Why SPACs were attractive to non-accredited investors. What the next hot asset class could be, according to Maria.Links Mentioned in Today’s Episode:Maria Charon on LinkedInSECFordham University School of Law Corporate Law Center
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Feb 14, 2023 • 39min

Richard Squire on the Crypto Bankruptcies

Given the recent collapse of some of the major players in the crypto space, its future is uncertain. Joining us for the very first episode of the Bite Sized Business Law Podcast to discuss crypto bankruptcies and what some are calling the ‘crypto winter’, is business law professor and faculty director of Fordham University School of Law’s Corporate Law Center, Richard Squire. Richard breaks down some of the similarities that exist between the auto industry bubble, the dot-com bubble, the 2008 financial crisis, and what we’re currently seeing in the crypto space. We discuss the interconnectedness between companies and whether or not insolvency leads to insolvency before Richard sheds light on what he expects for the future of crypto. You’ll hear his thoughts on whether or not we should expect more regulation, why he doesn’t believe there is a path forward for FTX, and the likelihood of FTX’s creditors getting their money back. To find out why Richard is actually positive about the future of crypto despite its current state, tune in today!Key Points From This Episode:An introduction to Professor of Business Law, Richard Squire.Today’s topic: crypto bankruptcies or the ‘crypto winter’. Parallels between the auto industry bubble, the dot-com bubble, the 2008 financial crisis, and what’s happening currently in crypto. To what extent there will be contagion. Concerns about the Federal Home Loan Bank system lending billions to crypto companies and whether or not insolvency leads to insolvency. The expansion of the monetary base by the Federal Reserve in recent years and how this has affected what has happened in crypto.Whether or not we should expect more regulation on crypto than that which already exists.Why big firms are in favor of stricter regulations. Whether or not there’s a path forward for FTX, as its CEO believes there is.  The likelihood of the FTX creditors getting their money back. The emergence of markets where you can buy and sell FTX claims and whether or not they are specific to crypto bankruptcy.Links Mentioned in Today’s Episode:Richard Squire FTXFordham University School of Law Corporate Law Center

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