The Economic Times

US Fed, BoE step up scrutiny of bank exposure to trading firms after Jane Street loss: Report

Global banks face inquiries from central banks regarding trading firm exposures. The Bank of England and Federal Reserve seek details on risk appetite and controls. This follows significant losses at Jane Street after hedge fund Situational Awareness's issues. Regulators are examining trading activity and leverage use by the AI-focused fund. Information is being gathered on how bank exposures evolved during trading days.