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Since Sept. 11, investment banks have been reworking the language in their underwriting agreements for initial public offerings to provide greater protection against future market disruptions. Such calamity clauses shield underwriters against market-related events that may play havoc with an IPO, but securities regulators worry that underwriters will use the provision to weaken their commitments to clients.
November 14, 2001 at 12:00 AM
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The original version of this story was published on Law.Com
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