First Brands’ Go-To Bank Jefferies Opens Books as Fallout Builds

For Jefferies Financial Group Inc., the speculation around its role in the sudden demise of First Brands Group became too loud to ignore.

As First Brands’ banker for more than a decade, Jefferies’ name appeared frequently during the company’s ascent to a conglomerate of aftermarket automotive parts. In recent weeks, though, New York-based Jefferies has come under scrutiny for its relationship with a company that collapsed into bankruptcy in spectacular fashion last month amid concerns about its reliance on supply-chain financing.

On Wednesday, Jefferies sought to clear the air, laying out in the most direct terms yet how it ...