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

What To Know: According to Reuters, Jefferies executives said at the bank's investor day that the Point Bonita fund involved in the collapse of auto parts maker First Brands operates independently from its investment banking division.

"The Point Bonita fund in asset management sits absolutely separate, distinct and apart from whatever happens in investment banking. Kind of Chinese Wall 101," said President Brian Friedman. He added that the fund's 2019 decision to engage with First Brands was made independently from the investment banking side.

CEO Rich Handler said Jefferies believes it "was defrauded" in the situation but noted that the overall environment remains "generally good."

Jefferies previously said its exposure to First Brands is limited and any potential loss would be "readily absorbable."

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JEF Price Action: At the time of writing, Jefferies Financial ( JEF ) stock is trading 5.06% higher at $51.27, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.