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A joint venture between Norinchukin Bank and Japanese trading house Mitsui & Co. faces $1.75 billion of exposure to bankrupt auto parts supplier First Brands Group, court documents show.

First Brands' bankruptcy filing set off a round of damage limitation by Wall Street firms now attempting to size up their exposure to the company.

A fund controlled by a unit of Jefferies Financial Group sunk nearly a quarter of its $3 billion trade finance portfolio into receivables tied to auto parts supplier First Brands Group.

The measures underscore the pressures on the German auto industry, which is reeling from sluggish demand in Europe, the cost of tariffs and rising competition from Chinese manufacturers.

The financing fueled investor concerns before the auto parts supplier fell into bankruptcy.

The filing caps weeks of turmoil sparked by creditor concern over the auto supplier’s use of opaque off-balance sheet financing.

Auto part supplier First Brands Group is preparing to enter bankruptcy with no restructuring plan in place, a sign of how quickly the company’s fortunes are unraveling, sources said.

Several parts makers face idle capacity and are under pressure from carmakers to lower prices.

The development could increase pressure on First Brands, which has been considering whether to file for bankruptcy to raise a rescue loan after halting a $6 billion refinancing in August.

First Brands Group is preparing to file for bankruptcy as soon as next week and is looking to secure a loan of at least $1 billion to keep the business running, according to sources.