The Latest Breaking News from First Brands

The U.S. Securities and Exchange Commission is investigating Jefferies Financial Group Inc. (NYSE:JEF) over whether the investment bank adequately informed investors about its exposure to First Brands Group, the now-bankrupt car parts supplier whose collapse triggered widespread scrutiny across the private credit sector.

Alarm bells are ringing about the private credit market and ‘cockroaches’ in the system — the time to act is now, says Chris Blackhurst

Andrew Bailey says a close look is needed at the private credit market after collapse of two big US firms

Some say this is more about mudslinging between private credit’s competitors and a misunderstanding about direct lending.

With investors already on edge, any additional credit hiccups could prompt a new round of selling.

First Brands and Tricolor failures raise concerns for wider financial sector, including traditional banks

“My antenna goes up when things like that happen,” Jamie Dimon said of First Brands. “When you see one cockroach, there are probably more.”

Jefferies Financial Group, Inc. shares are trading higher Friday following reports suggesting that its fund connected to First Brands is separate from its investment banking business

Following a temporary lull, the regional bank storm has returned. On Oct. 16, the SPDR SP Regional Banking ETF (NYSE:KRE) tumbled 6.2%, its biggest one-day decline since early 2023.