[Bank of America: The Collapse of Situational Awareness is a Warning for Leveraged Markets] Bank of America CEO Brian Moynihan stated that the recent near-collapse of the high-profile AI hedge fund Situational Awareness serves as a warning for today's financial markets, which are driven by high valuations and borrowed capital. Last week, the fund, created by former OpenAI employee Leopold Aschenbrenner, was forced to liquidate most of its public equity holdings at a discount to Citadel due to failed AI investment bets. Bank of America, one of the fund's primary brokers, was responsible for executing trades and providing leveraged financing. 'These are warning signs,' Moynihan said. 'As valuation levels rise and leverage in the system increases, you must exercise caution.'