# US banking sector warnings on market leverage

> Live situation record from CLSTR: https://clstr.news/situations/us-banking-sector-warnings-on-market-leverage
> Updated: 2026-08-16T13:43:42.000Z. Sources: 4. Developments: 2.

CEOs of the two largest US banks, Jamie Dimon of JPMorgan Chase and Brian Moynihan of Bank of America, have issued warnings regarding high levels of “hidden leverage” in financial markets. Dimon noted that while visible margin debt is at record highs, significant risk resides in unrecorded borrowing through hedge funds, arbitrage strategies, and full-service brokers.

These warnings follow market turbulence involving Situational Awareness, an AI-focused hedge fund led by Leopold Aschenbrenner. The fund, which reached approximately $45 billion, faced margin calls on leveraged technology positions, necessitating a rapid sale of its public portfolio to Citadel. Both JPMorgan and Bank of America acted as the fund’s primary brokers.

Additional macroeconomic risks identified for the upcoming autumn include potential interest rate adjustments by the Riksbank due to inflation and energy prices, as well as upcoming elections in Sweden and the US.

## Timeline

### 2026-08-16: AlixPartners report shows rising anxiety and disruption among CEOs

A new AlixPartners report shows rising anxiety among CEOs, with 45% fearing job loss due to inflation, AI advancements, and increasing global economic and political uncertainty.

2 sources. https://clstr.news/cluster/alixpartners-report-shows-rising-anxiety-and-disruption-among-ceos

### 2026-08-10: US bank CEOs warn of hidden market leverage risks

Top US bank CEOs warn of hidden market leverage following a hedge fund's recent volatility, amid broader concerns over inflation, elections, and the AI sector's sustainability.

2 sources. https://clstr.news/cluster/us-bank-ceos-warn-of-hidden-market-leverage-risks

---
Cite as: US banking sector warnings on market leverage. CLSTR, https://clstr.news/situations/us-banking-sector-warnings-on-market-leverage