The US Securities and Exchange Commission is investigating investment bank Jefferies over its relationship with collapsed car parts company First Brands Group.
The regulator is seeking information about whether Jefferies gave investors in its Point Bonita fund enough information about their exposure to the auto business, which filed for bankruptcy in September with $12bn in debt, according to two people with knowledge of the matter.
It is also looking into internal controls and potential conflicts within and between different parts of the bank. The SEC’s inquiry is at an early stage and it is not clear whether it will result in any allegations of wrongdoing.