economy
SEC subpoenas Wall Street banks over Situational Awareness
The US Securities and Exchange Commission has sent subpoenas to major Wall Street banks regarding the hedge fund Situational Awareness, according to people familiar with the matter.
TL;DR
- The SEC has subpoenaed major Wall Street banks concerning the hedge fund Situational Awareness.
- The inquiry relates to the hedge fund's trading activity, which faced pressure and led to position exits last month.
- Situational Awareness liquidated equity positions due to margin calls during the AI stock rout.
- Ken Griffin's Citadel acquired the majority of the fund's public stock investments.
- The hedge fund confirmed its cooperation with regulatory requests, stating it is a highly-regulated business.