Jefferies Showed Risk Deficiencies in Bundesbank Probe, FAZ Says

The Bundesbank has identified risk management shortcomings at Jefferies Financial Group Inc.’s German unit as part of a special audit, Frankfurter Allgemeine Zeitung reported, without saying where it got the information.

The newspaper suggested that findings at Jefferies GmbH fit a category that usually results in fines and that the Bundesbank is also likely to tell the firm to beef up its local risk management.

A spokeswoman for the Bundesbank declined to comment on individual lenders. A spokeswoman for Jefferies declined to comment.

The scrutiny is the result of work that Jefferies is thought to have done for ...