The Jefferies Financial Group Inc. headquarters in New York, US, on Monday, Oct. 20, 2025.
The U.S. Securities and Exchange Commission is investigating Jefferies' relationship with bankrupt auto parts maker First Brands Group, The Financial Times reported Thursday.
The newspaper, citing people with knowledge of the matter, said the regulator is looking into whether Jefferies provided investors with sufficient information on its Point Bonita fund's exposure to the financially troubled auto business.
The inquiry into internal controls and potential conflicts within the bank is in its early stages, with the report indicating it's not clear whether it will lead to any formal allegations of wrongdoing.
Jefferies faced scrutiny last month following revelations of its exposure to First Brands, which collapsed due to a series of complex debt agreements, sparking concerns over the possibility of other problematic loans on Wall Street.