Monday, Oct. 20, 2025 Jefferies Financial Group Inc. headquarters in New York, US.
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The US Securities and Exchange Commission is investigating Jefferies’ relationship with bankrupt auto parts maker First Brands Group. Financial Times reported on Thursday.
The newspaper cited people with knowledge of the matter as saying that regulators are investigating whether Jefferies gave enough information to investors about its Point Bonita fund’s exposure to the failed auto business.
An investigation into internal controls and potential conflicts at the bank is at an early stage, the report said. It’s unclear whether that will result in wrongdoing charges.
Jefferies came under pressure last month after the exposure of First Brands – which collapsed under a series of complex debt covenants – raised fears of another bad loan on Wall Street.
Jefferies, ytd performance
Shares of Jefferies are down more than 12% this quarter and 27% this year.
When asked for comment, an SEC spokesman said the agency “does not comment on the existence or non-existence of potential investigations.”
Jefferies did not respond to CNBC’s request for comment.