SEC Investigates Jefferies Into First Brands Collapse
Jefferies Financial Group Inc., New York, USA, Monday, October 20, 2025. head office.
Michael Nagel | Bloomberg | getty images
The U.S. Securities and Exchange Commission (SEC) is investigating Jefferies’ relationship with bankrupt auto parts maker First Brands Group, the Financial Times reported Thursday.
Regulators are investigating whether Jefferies provided sufficient information to investors about its Point Bonita fund’s exposure to the failed auto business, the newspaper said, citing people familiar with the matter.
The investigation into internal controls and potential conflicts within the bank is in its early stages, the report said. It’s unclear whether it will lead to misconduct charges.
Jefferies came under pressure last month after its exposure to First Brands, which collapsed under a series of complex debt contracts, raised fears of other bad loans on Wall Street.
Jefferies, performance this year
Shares of Jefferies are down more than 12% this quarter and 27% this year.
Asked for comment, an SEC spokesperson said, “We do not comment on whether or not an investigation is possible.”
Jefferies did not respond to CNBC’s request for comment.
