The Jefferies Financial Group Inc. headquarters in New York, US, on Monday, October 20, 2025.
The U.S. Securities and Exchange Commission is probing Jefferies' connection to the bankrupt auto parts manufacturer First Brands Group, according to a report by The Financial Times on Thursday.
The newspaper, referencing sources familiar with the situation, noted that the regulatory body is investigating whether Jefferies adequately informed investors about the Point Bonita fund's exposure to the auto business that imploded.
The investigation, which is at an early phase, aims to evaluate internal controls and examine potential conflicts within the bank, the report stated. It is yet to be determined if this will lead to any formal allegations of misconduct.
Last month, Jefferies faced scrutiny following its exposure to First Brandsāan entity that collapsed due to a web of intricate debt agreementsāsparking concerns over the possibility of additional problematic loans on Wall Street.