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The regulator sought details on the fund's trades, leverage, and communications with lenders including Goldman Sachs, JPMorgan, Citigroup, and Bank of America
The Securities and Exchange Commission sent subpoenas to major Wall Street banks seeking information about their dealings with Situational Awareness, the AI-focused hedge fund that nearly collapsed in late July, according to The New York Times.
The subpoenas requested information about when Situational Awareness executed its trades and how the fund communicated with lenders regarding its use of borrowed capital. The banks were also instructed by regulators to retain all records concerning the fund. The banks named in the inquiry include Goldman Sachs $GS, JPMorgan $JPM Chase, Citigroup $C, and Bank of America $BAC, according to a regulatory filing cited by The New York Times. Spokespeople for all four banks declined to comment.
Situational Awareness has not been accused of any wrongdoing. The SEC declined to comment. Any investigation would be at its earliest stages and may not lead to enforcement action.
