Missing Billions and a Secretive CEO: The First Brands Bankruptcy

The Journal discusses the bankruptcy of First Brands, an automotive company with well-known brands, and the financial irregularities that led to its downfall. The episode highlights the company's aggressive acquisition strategy, its complex debt structure involving factoring and off-balance sheet loans, and the role of its CEO, Patrick James. It also examines the involvement of Jefferies Financial, which had a dual role as both an investment banker and a lender to First Brands, and the potential implications of this scandal for Wall Street, including concerns about due diligence and the possibility of similar situations in other companies.