00:00It's Benzinga bringing Wall Street to Main Street.
00:02The Securities and Exchange Commission has subpoenaed Goldman Sachs, JPMorgan, Citigroup
00:08and Bank of America over their role in the near collapse of AI-focused hedge fund situational
00:14awareness, according to CNBC.
00:17Regulators are seeking information about the fund's trades, leverage and communications
00:22with the banks.
00:23Situational awareness fell from about $45 billion to around $10 billion in late July
00:28after losses during a tech sell-off triggered margin calls.
00:31The fund, led by former OpenAI researcher Leopold Ashenbrenner, was forced to unwind concentrated
00:37leverage positions, including SK Hynix and CoreWeave.
00:41Citadel bought the positions at an estimated 10% discount and has since offloaded about
00:4680% of the associated risk.
00:48The inquiry does not mean the banks or situational awareness have been accused of wrongdoing.
00:54For all things money, visit Benzinga.com.
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