A representative for Jefferies declined to comment, while the SEC didn’t immediately respond to a request seeking comment. The FT said the SEC inquiry is at an early stage and it is not clear whether it will result in any allegations of wrongdoing.
Jefferies shares have tumbled since it disclosed its exposure to First Brands. At Point Bonita, a unit of Jefferies’ Leucadia Asset Management, about a quarter of the US$3 billion portfolio was tied to so-called trade finance agreements running through First Brands. The bank also helped First Brands sell a significant chunk of its long-term loans over the past decade.
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