According to the filing, Handler reminded that details regarding Jefferies’ exposure to First Brands Group and its relationship with the company had been disclosed transparently over the weekend.
Handler stated that they do not yet know exactly what happened at First Brands, noting that more details would become clear as the bankruptcy process progresses.
He said, “I’ll just say this — it’s our personal view — we believe we were defrauded.”
Handler also mentioned that a rival company faced a similar situation, but he does not consider it a systemic issue. He added that he had spoken with many investors, CEOs, and industry representatives, and that the overall economic environment remains “quite good.”
Handler emphasized that while such incidents in the financial sector often serve as early warning signs, no such pattern appears to be emerging this time.
Bank Stocks Fell Amid Concerns Over Problematic Loans Utah-based Zions Bank disclosed in a filing with the SEC that it had detected irregularities in two commercial loans, resulting in a $50 million loss.
Similarly, Arizona-based Western Alliance Bank notified the SEC that it had filed a lawsuit against a borrower on fraud allegations.
These disclosures of irregularities in certain loans sparked concerns about banks’ loan portfolios, leading to a decline in bank shares.
Shares of Jefferies Financial Group, which had previously warned of exposure risks due to loans to First Brands Group, which filed for bankruptcy last month, fell more than 10% yesterday. However, as of 10:00 p.m. local time (TSİ 22.00), the company’s stock had rebounded by more than 6%.
