SEC SUBPOENAS BANKS OVER SITUATIONAL AWARENESS TRADING The SEC has subpoenaed major Wall Street banks for information tied to AI-focused hedge fund Situational Awareness, per NYT. Regulators are seeking details on the timing of the fund’s trades, its leverage and communications with lenders after the fund nearly imploded last month. Situational Awareness managed more than $30B at its peak and borrowed tens of billions more, with Bank of America, Citi, Goldman Sachs and JPMorgan among its major counterparties. After leveraged AI bets moved sharply against the fund, it was forced to sell most of its stock portfolio to Citadel at a discount. The inquiry is still at an early stage, and the fund has not been accused of wrongdoing.