SEC investigates Jefferies over First Brands collapse, report says
Jefferies Financial Group Inc. in New York, USA on Monday, October 20, 2025. headquarters.
Michael Nagle | Bloomberg | Getty Images
The U.S. Securities and Exchange Commission is investigating Jefferies’ relationship with bankrupt auto parts maker First Brands Group. Financial Times It was reported on Thursday.
The regulator is investigating whether Jefferies gave investors adequate information about its Point Bonita fund’s exposure to its failing auto business, the newspaper said, citing people with knowledge of the matter.
The investigation into internal controls and possible conflicts within the bank is at an early stage, the report said. It is unclear whether this will result in any allegations of impropriety.
Jefferies came under pressure last month after its exposure to First Brands, which collapsed over a series of complex debt deals, raised fears on Wall Street about other bad loans.
Jefferies, ytd performance
Jefferies’ shares are down more than 12% this quarter and more than 27% this year.
When asked for comment, an SEC spokesperson said the agency “does not comment on the existence or absence of a potential investigation.”
Jefferies did not respond to CNBC’s request for comment.
