SPAC Underwriters
The banks that enabled the bubble — collecting an estimated $8.0B in fees while investors lost billions.
Banks Tracked
10
2021 SPAC IPOs
330
Est. Total Fees
$8.0B
Bankrupt SPACs
27
Pulled back from SPACs after SEC scrutiny
Est. Fees
$1800M
Stopped working on most new SPAC IPOs
Est. Fees
$1500M
Bank itself later collapsed
Est. Fees
$1200M
Est. Fees
$800M
Est. Fees
$600M
Est. Fees
$500M
Est. Fees
$500M
Est. Fees
$400M
Est. Fees
$350M
Specialist SPAC underwriter
Est. Fees
$300M
How Underwriter Fees Work
SPAC underwriters typically earn a 5.5% feeon the IPO — but with a twist. Only 2% is paid upfront. The remaining 3.5% (the "deferred fee") is paid only when the SPAC completes a merger. This structure was supposed to align incentives, but in practice it incentivized banks to push deals through at any cost.
During 2020-2021, banks competed aggressively for SPAC mandates, loosening standards and underwriting increasingly speculative blank check companies. When the bubble burst, many banks quietly walked away from deferred fees — but they'd already collected billions upfront.