The Situational Awareness fund, created by former OpenAI researcher Leopold Aschenbrenner, lost approximately 67% in July following the correction of AI and semiconductor stocks. Jane Street recorded a monthly loss of around 15 billion dollars, its first in nearly a decade, partly due to its positions in these technology stocks. The US Federal Reserve and the Bank of England are now questioning major banks about their exposures to leading trading firms and their control mechanisms during periods of volatility. The SEC is simultaneously examining the fund’s use of leverage and its communications with creditor banks.
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