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US Fed, BoE step up scrutiny of bank exposure to trading firms after Jane Street loss, FT reports
The Bank of England and the US Federal Reserve are asking global banks about their exposures to large trading firms after turmoil at hedge fund Situational Awareness caused large losses at Jane Street, the Financial Times reported on Monday. The AI-focused fund, run by former OpenAI researcher Leopold Aschenbrenner, was forced to sell most of its public equities portfolio to Citadel Securities after a sharp sell-off in AI and chip stocks. This contributed to Jane Street taking a $15 billion hit that month. The central banks are now seeking information on the trading firms’ risk appetite, how b...
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