Today’s need-to-know storiesSEC targets US banks in Situational Awareness hedge fund probe
The US Securities and Exchange Commission has subpoenaed Goldman Sachs, JPMorgan, Citigroup and Bank of America over their dealings with Situational Awareness, the AI-focused hedge fund that was forced into an emergency asset sale after suffering heavy losses during July’s technology sell off.
The regulator has requested information on the fund’s trades and communications with the banks that provided it with leverage, according to a New York Times report citing two people familiar with the probe. Lending to hedge funds has become an increasingly important business for Wall Street banks.
Situational Awareness, run by former OpenAI researcher Leopold Aschenbrenner, amassed more than $20bn in assets in only two years before losses on AI-related bets forced it to sell most of its equity portfolio to hedge fund Citadel.
In a statement, Situational Awareness said it would “co-operate to the fullest extent with any regulatory request”. The fund has not been accused of wrongdoing, and the SEC said its inquiry remains at the “information gathering” stage.
NatWest steps up US expansion with Connecticut office
NatWest has secured approval from the US Federal Reserve to establish a representative office in Stamford, Connecticut, as the UK lender looks to rebuild its presence in the US.
The Fed approved the application on August 20, saying the office would “act as a liaison with current and prospective US customers of the bank”. NatWest already operates a US-licensed broker-dealer in Stamford.
The move represents NatWest’s most significant expansion into the US since the financial crisis, when NatWest, then known as Royal Bank of Scotland, was forced to dismantle much of its international business following a £45.5bn government bailout. RBS completed the sale of its US retail banking arm, Citizens Financial Group, in 2015.
A person familiar with the matter told the FT that changes to UK ringfencing rules in January 2025 were a key factor in NatWest’s decision to expand its US operations.
Ex-Deutsche Bank worker stands trial over alleged €630,000 branch fraud
A former Deutsche Bank employee is due to go on trial on Tuesday accused of embezzling around €630,000 from customers while working at one of the lender’s main Frankfurt branches.
German business daily Handelsblatt previously reported that prosecutors allege the employee carried out 21 unauthorised transfers between December 2023 and March 2025, redirecting customer funds to a relative’s account.
Deutsche Bank, which reported the incident to authorities after discovering the transfers, said fewer than 10 clients were affected and all have been fully compensated.
“Deutsche Bank regrets this incident and terminated the employee involved with immediate effect,” the lender said in comments to Reuters. The bank said it had since strengthened its control mechanisms and increased fraud awareness across its sales and branch network.
Revolut appoints Singapore advisory board
Revolut has established an advisory board in Singapore as part of its long-term strategy for Asia.
The challenger bank has appointed Teo Ser Luck, the former minister of state for manpower and trade and industry, Charles Wong, the founding CEO of GXS Bank Singapore, and governance and risk specialist Yvonne Aw.
The new board will advise the bank’s Singapore leadership on governance, regulatory engagement, business strategy and sustainable growth.
“Their collective experience will strengthen local accountability and governance, whilst supporting our long-term growth and commitment to the high standards expected of a trusted financial institution,” Raymond Ng, CEO of Revolut Singapore and south-east Asia, said in a statement.
Revolut was first granted a remittance licence by the Monetary Authority of Singapore in 2018, and subsequently was awarded a Major Payments Institution licence and Capital Markets Services licence, but does not hold a full banking licence. It has recently been granted a banking licence in Australia, and is considering entering the country’s competitive mortgage market.
Hang Seng plans to hire relationship managers in HK wealth push
Hang Seng Bank is planning to expand its wealth management operations in Hong Kong with new branches and an expanded workforce.
The bank has opened two new wealth management centres this year and is planning to increase its relationship manager headcount by 20 per cent, Rannie Lee, head of retail banking and wealth at Hang Seng Bank, told a media briefing.
There are plans to open a retail banking centre and additional wealth centres in Hong Kong over the coming 18 months.
The bank, which was fully acquired by HSBC in January, has seen strong growth in the first half of the year, recording a 34 per cent year-on-year increase in fee and other income, accounting for 31.6 per cent of total revenue.
Additionally, the bank onboarded 60,000 new customers in the second quarter, twice as many as in the previous quarter.
The Hong Kong segment of HSBC’s wealth business grew 22 per cent in the first six months year-on-year, and contributed $5.1bn to the overall bank group’s revenues.