SEC Subpoenas Major Banks in Probe of AI Hedge Fund Situational Awareness

The SEC has issued subpoenas to Goldman Sachs, JPMorgan Chase, Citigroup, and Bank of America as part of an investigation into the AI-focused hedge fund Situational Awareness, which suffered steep losses after a downturn in AI stocks. The fund, led by former OpenAI researcher Leopold Aschenbrenner, employed high leverage and concentrated positions, leading to margin calls and a bailout by Citadel. Regulators are examining the fund's trades, leverage, and communications with banks. Situational Aw