The SEC subpoenaed four banks over the near-collapse of AI hedge fund Situational Awareness.

Goldman, JPMorgan, Citi and BofA received subpoenas seeking trade timing, borrowing records and communications around the margin calls that forced the fund to dump most of its equity book to Citadel at a discount (CNBC). The fund, founded by former OpenAI researcher Leopold Aschenbrenner, ran more than $30 billion with reported leverage up to 400%. Nobody has been accused of wrongdoing. It's the first regulator inquiry into the leverage structure behind the AI trade rather than into an AI company.