Good morning from the Financial Times. Today is Friday, May 28th, and this is your FT news briefing.

The collapse of our Chegos capital has rippled into the SPAC market,

and the man who led the activist campaign against Exxon Mobile tells the FT what he expects the oil company to do next.

Plus, the US stock market has cooled off, but European equities are heating up.

So for once, Europe is actually getting some positive attention.

I'm Mark Filipino, and here's the news you need to start your day.

The US Department of Justice yesterday opened an investigation into our Chegos capital.

That's the family investment office that collapsed earlier this year,

saddling several major banks with billions of dollars in losses.

The mess has also rippled into the market for SPACs, or special purpose acquisition companies.

As the FTs or Tensa Aliya explains, banks are pulling back their leverage to hedge funds,

who are big investors in SPACs.

They're predominantly early investors. They get allocations before the SPAC has IPO,

doesn't before other investors, public investors can invest in the vehicle.

In order to make the returns juicy, they borrow money from their prime broker,

and they use that money to invest in the SPAC,

and it means that they tend to get better returns.

For what is considered to be a relatively risk-free asset.

Now, if everyone remembers going back to our Chegos,

a lot of the prime brokers across Wall Street, Europe, and Asia fell into a little bit of trouble

because of what happened with Bill Wang, who is the founder of the family office.

The family office was highly leveraged.

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