SEC subpoenas Wall Street banks over Situational Awareness fund

BREAKING: The SEC has subpoenaed major Wall Street banks over their dealings with Leopold Aschenbrenner's Situational Awareness fund, according to the NYT.
Regulators are reportedly examining the fund's trading activity and financing, including the timing of trades and how it communicated with lenders about leverage.
Situational Awareness had grown to more than $30 billion in assets before reportedly losing around 67% of its portfolio value during July's sharp AI-stock selloff.
The losses ultimately forced the fund to sell most of its public holdings to Citadel.
The investigation puts renewed attention on leverage and risk management inside highly concentrated AI trades.