Regulators Find Their Situational Awareness: Fed, BoE Probe Bank Exposure To Jane Street After AI Fund Meltdown

Regulators Find Their Situational Awareness: Fed, BoE Probe Bank Exposure To Jane Street After AI Fund Meltdown Better late than never... Nearly two months after Leopold Aschenbrenner's Situational Awareness went from a $45 billion AI juggernaut to a Citadel block trade after it dumped its entire public book on Ken Griffen's doorstep at a 10% discount and six weeks after we learned that Jane Street lost $15 billion in July, its first down month in a decade, central bankers on both sides of the Atlantic have noticed that something may have happened. According to the FT, the Bank of England's Prudential Regulation Authority and the Federal Reserve have "stepped up scrutiny" of banks' exposure to large trading firms and...

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