Monday, October 20, 2025, at Jefferies Financial Group headquarters in New York, USA.
Michael Nagle | Bloomberg | Getty Images
The Financial Times reported Thursday that the U.S. Securities and Exchange Commission is investigating Mr. Jefferies’ ties to bankrupt auto parts maker First Brands Group.
The newspaper, citing people familiar with the matter, said regulators are investigating whether Jefferies provided investors with sufficient information about the Points Bonita fund’s exposure to the bankrupt auto business.
The investigation into internal controls and potential conflicts within the bank is in its early stages, the report said. It’s not clear whether that will lead to allegations of wrongdoing.
Jefferies came under pressure last month after its exposure to First Brands, which collapsed under a series of complex debt arrangements, sparked concerns on Wall Street about other bad loans.
Jeffries performance of the year
Jefferies stock is down more than 12% this quarter and more than 27% this year.
When asked for comment, an SEC spokesperson said, “We do not comment on whether there is an investigation.”
Jeffries did not respond to CNBC’s request for comment.
