SEC Investigates Situational Awareness After AI Hedge Fund's $35 Billion Collapse
The Securities and Exchange Commission has subpoenaed Goldman Sachs, JPMorgan, Citigroup and Bank of America over their dealings with Situational Awareness, the AI-focused hedge fund that plunged from $45 billion to $10 billion in late July. Regulators want details on the fund's trades, leverage and communications with lenders after 400% leverage turned a bad month into financial distress.