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The U.S. Securities and Exchange Commission is investigating Jefferies’ relationship into bankrupt auto parts maker First Brands Group, The Financial Times reported Thursday.

The newspaper, citing people with knowledge of the matter, said the regulator is looking into whether Jefferies gave investors enough information on its Point Bonita fund’s exposure to the failed auto business.

The inquiry into internal controls and potential conflicts within the bank is at an early stage, the report said. It’s not clear whether it will result in any allegations of wrongdoing.

Jefferies came under pressure last month after its exposure to First Brands — which collapsed under a series of complex debt agreements — raised fears of other bad loans on Wall Street.

Shares of Jefferies are down more than 12% this quarter and 27% this year.

When asked for comment, an SEC spokesperson said the agency “does not comment on the existence or nonexistence of a possible investigation.”

Jefferies did not respond to CNBC’s request for comment.