Arabic version: هيئة الأوراق المالية والبورصات تستدعي بنوكاً على خلفية انهيار «سيتيويشنال أويرنس»
According to Cnbc, the Securities and Exchange Commission has reportedly subpoenaed several Wall Street lenders for information about their role in the near-collapse of AI-focused hedge fund Situational Awareness.
Reuters, citing a source familiar with the matter, reported that regulators are seeking information on the fund’s trades, use of leverage and communications with investment banks including Goldman Sachs, JP Morgan, Citigroup and Bank of America. The New York Times first reported the subpoenas.
Situational Awareness fell from about $45 billion to around $10 billion in late July after a rapid technology sell-off. The fund, led by former OpenAI researcher Leopold Aschenbrenner, was forced to unwind much of its publicly listed portfolio of large, concentrated and levered positions, including SK Hynix and CoreWeave, after losses triggered several margin calls among its prime brokers.
Citadel bought the positions at a discount understood to be around 10%. Ken Griffin said in an investor letter Friday that Citadel had since offloaded about 80% of the risk associated with the Situational Awareness portfolio. SK Hynix and CoreWeave have since rallied.
The information request does not mean the banks or Situational Awareness have been accused of wrongdoing, and such inquiries can end without enforcement action. Situational Awareness said it would cooperate fully with any regulatory request. Goldman Sachs, JP Morgan and Citigroup declined to comment, while CNBC contacted Bank of America for comment.
