Jefferies Defends First Brands Deals, Says Losses Are Manageable

Jefferies Financial Group Inc.defended its dealings with First Brands Group and said its exposure to the bankrupt auto-parts supplier was small, as the investment bank sought to revive investor confidence after a sharp selloff in its stock.

Shares of the company advanced 3% Monday after the bank said on Sunday that the situation could cause financial losses “over time,” but indicated that the numbers were relatively small. The stock has lost about a quarter of its value since the First Brands problems emerged last month.

In its statement, Jefferies pointed to indirect investments including $43 million, or 5.9%, of ...