SEC subpoenas Wall Street banks over hedge fund Situational Awareness

Published Aug 24, 11:26 PM UTC

The U.S. Securities and Exchange Commission has issued subpoenas to major Wall Street banks regarding the hedge fund Situational Awareness, according to sources familiar with the matter. The subpoenas seek information related to the fund's trading activity after it came under pressure and was forced to exit many positions last month during an AI stock rout. The fund faced margin calls and began liquidating equity positions, with Ken Griffin's Citadel stepping in to buy the bulk of its public stock bets. Situational Awareness stated it is a highly-regulated business and will cooperate fully with any regulatory request. An SEC inquiry does not necessarily indicate a firm is under investigation, and probes can end without enforcement action.