SEC subpoenas banks over collapse of AI fund Situational Awareness

AI-focused investment firm Situational Awareness had no investment risk team, and after its sell-off the SEC sent subpoenas to major banks that financed its trades. Wall Street banks lent billions to the upstart firm, raising questions about their role.

• Situational Awareness lacked an investment risk team
• SEC subpoenaed major banks after the sell-off
• Banks financed the fund's trades worth billions of dollars