# Fed and Bank of England reportedly examine banks' exposure to large trading firms

_Published Monday, September 21, 2026 at 5:16 AM EDT · Policy, Products · Latest · Tier 1 — Major_

![US Fed, BoE step up scrutiny of bank exposure to trading firms after Jane Street loss, FT reports - Finance news and analysis from Global Banking & Finance Review — Primary](https://www.globalbankingandfinance.com/i/cloud-c5b94ea9-1ce7-47ad-b92e-3641e06d0f03/width=1200,height=630,quality=80,format=auto,fit=cover/)

The Federal Reserve and Bank of England are asking global banks about their exposure to large trading firms after turmoil at AI-focused hedge fund Situational Awareness caused losses at Jane Street, the Financial Times reported. The inquiries cover firms' risk appetite, banks' intraday exposure and the operation of risk controls.

Situational Awareness reportedly sold most of its public-equities portfolio to Citadel Securities after AI and chip stocks fell sharply, contributing to a $15 billion hit at Jane Street. Reuters said it could not independently verify the report, and the regulators and Jane Street did not immediately comment.

## Sources

- [globalbankingandfinance.com](https://www.globalbankingandfinance.com/us-fed-boe-step-up-scrutiny-bank-exposure-trading-firms-jane/)

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Canonical: https://techandbusiness.org/newswire/RIWOCJHeM10adXzuPAZ02X
Published: 2026-09-21T09:16:13.354Z
Story chronology: 2026-09-21T05:08:08.000Z
Retrieved: 2026-09-21T13:27:24.444Z
Publisher: Tech & Business (techandbusiness.org)