The Jefferies Monetary Group Inc. headquarters in New York, US, on Monday, Oct. 20, 2025.
Michael Nagle | Bloomberg | Getty Photographs
The U.S. Securities and Trade Fee is investigating Jefferies’ relationship into bankrupt auto elements maker First Manufacturers Group, The Monetary Occasions reported Thursday.
The newspaper, citing individuals with data of the matter, mentioned the regulator is wanting into whether or not Jefferies gave traders sufficient data on its Level Bonita fund’s publicity to the failed auto enterprise.
The inquiry into inner controls and potential conflicts inside the financial institution is at an early stage, the report mentioned. It is not clear whether or not it should end in any allegations of wrongdoing.
Jefferies got here beneath strain final month after its publicity to First Manufacturers — which collapsed beneath a collection of advanced debt agreements — raised fears of different unhealthy loans on Wall Avenue.
Jefferies, ytd efficiency
Shares of Jefferies are down greater than 12% this quarter and 27% this 12 months.
When requested for remark, an SEC spokesperson mentioned the company “doesn’t touch upon the existence or nonexistence of a potential investigation.”
Jefferies didn’t reply to CNBC’s request for remark.