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24.09.26 - 23:36
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Regulators Find Their Situational Awareness: Fed, BoE Probe Bank Exposure To Jane Street After AI Fund Meltdown (ZeroHedge)
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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 market makers. They are asking global lenders how much they have lent to Jane Street and Ken Griffin's Citadel Securities, and presumably also to such HFT money makers as Susquehanna and Hudson River Trading.
Regulators want to know three things: the firms' risk...
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23.09.26 - 10:36
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BOE Officials Leave London for Leeds to Set Interest Rates (Bloomberg)
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Barring remote sessions during Covid, the UK's rate setters have gathered in London to make their decision at every meeting since the Bank of England gained independence over monetary policy. From next year, the Old Lady of Threadneedle Street will split the duty with Leeds....
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21.09.26 - 14:12
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Fears over interest rate rise and jobs send UK consumer confidence to three-year low (The Guardian)
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Blow to John Healey before budget as UK households face 'notable strain' on their financesBusiness live – latest updatesFears of a steep rise in mortgage payments and increasing job insecurity have sent UK consumer confidence tumbling to a three-month low, according to a leading survey.In a blow to John Healey before next month's budget, the S&P Global consumer sentiment index dropped to 42.7 in September from 42.9 in August, indicating “a notable strain on financial confidence across UK households”. Continue reading......
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