Fed and BoE are now asking banks about their exposure to big trading desks after Leopold Aschenbrenner's AI hedge fund almost blew up and cost Jane Street $15B.
SEC already hit Goldman, JPM, Citi and BofA with subpoenas last month. Now central banks want to see if risk controls actually worked when things got messy.
When AI-driven funds start moving serious size and nearly collapse, regulators wake up fast. This isn't just about one fund — it's about how much leverage is floating around and who's on the hook when things unwind.
SEC already hit Goldman, JPM, Citi and BofA with subpoenas last month. Now central banks want to see if risk controls actually worked when things got messy.
When AI-driven funds start moving serious size and nearly collapse, regulators wake up fast. This isn't just about one fund — it's about how much leverage is floating around and who's on the hook when things unwind.
