{"slug": "sec-subpoenas-wall-street-banks-over-situational-awareness", "title": "SEC subpoenas Wall Street banks over Situational Awareness", "summary": "The U.S. Securities and Exchange Commission has subpoenaed major Wall Street banks regarding the hedge fund Situational Awareness, which was forced to exit many positions last month amid an AI stock rout. The fund, which received a capital infusion from Ken Griffin's Citadel, said it will cooperate fully with the inquiry.", "body_md": "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.\n\nThe information being sought is related to the trading activity of the hedge fund, which came under pressure and was forced to exit many of its positions last month, said the people, who asked not to be identified discussing a confidential matter. The New York Times earlier reported on the SEC’s subpoenas.\n\nRead More: [The 24-Hour Race to Salvage Situational Awareness’ AI Bets](https://www.bloomberg.com/news/articles/2026-07-30/the-24-hour-race-to-salvage-situational-awareness-souring-bets)\n\nA spokesperson for the SEC declined to comment. An SEC inquiry doesn’t mean that a firm or individual is the focus of an investigation and a probe by the regulator can end without an enforcement action.\n\nThe fund began liquidating some of its equity positions as it faced a barrage of margin calls during last month’s AI stock rout. Ken Griffin’s Citadel stepped in to buy the bulk of its public stock bets.\n\n“It is to be expected that regulators would closely examine any funds that are high profile, produce significant returns, or have particularly dramatic drawdowns,” Situational Awareness said in a statement on Monday. “We are a highly-regulated business and will cooperate to the fullest extent with any regulatory request.”\n\n*breaks the traditional barrier between audience and newsroom. The show transforms*\n\n**Fortune Daily*** Fortune*’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders.\n\n**Watch here.**", "url": "https://wpnews.pro/news/sec-subpoenas-wall-street-banks-over-situational-awareness", "canonical_source": "https://fortune.com/2026/08/24/sec-subpoenas-wall-street-banks-situational-awareness-hedge-fund/", "published_at": "2026-08-24 22:45:12+00:00", "updated_at": "2026-08-24 23:12:37.156930+00:00", "lang": "en", "topics": ["ai-policy"], "entities": ["Securities and Exchange Commission", "Situational Awareness", "Citadel", "Ken Griffin", "New York Times"], "alternates": {"html": "https://wpnews.pro/news/sec-subpoenas-wall-street-banks-over-situational-awareness", "markdown": "https://wpnews.pro/news/sec-subpoenas-wall-street-banks-over-situational-awareness.md", "text": "https://wpnews.pro/news/sec-subpoenas-wall-street-banks-over-situational-awareness.txt", "jsonld": "https://wpnews.pro/news/sec-subpoenas-wall-street-banks-over-situational-awareness.jsonld"}}