STOCKS | Fed and Bank of England Step Up Scrutiny of Banks' Exposure to Trading Firms

The Federal Reserve and the Bank of England have significantly increased scrutiny of global banks' exposure to large trading firms and market makers after Jane Street suffered a historic loss. According to Sina Finance, citing the Financial Times, the move was prompted by Jane Street's $15 billion monthly loss in July 2026, driven by an AI-led stock market pullback, which was the firm's first monthly loss in a decade. Regulators are also asking major global banks about their funding and credit exposure to Jane Street, Citadel Securities, and other top non-bank financial intermediaries.