The headquarters of Jefferies Financial Group Inc. in New York, USA, on Monday, October 20, 2025.
Michael Nagle | Bloomberg | Getty Images
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 familiar with the matter, said the regulator was examining whether Jefferies had given investors enough information about its Point Bonita fund's involvement in the failed auto industry.
The investigation into internal controls and potential conflicts within the bank is at an early stage, the report said. It is not clear whether there will be allegations of wrongdoing.
Jefferies came under pressure last month after its involvement in First Brands – which collapsed due to a series of complex debt arrangements – sparked fears of more bad loans on Wall Street.
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Jefferies, past performance
Shares of Jefferies are down more than 12% this quarter and 27% this year.
When reached for comment, an SEC spokesman said the agency “does not comment on the existence or non-existence of a possible investigation.”
Jefferies did not respond to CNBC's request for comment.