Reported about 2 months ago
Moody's has warned that ongoing regulatory investigations into wealth managers' cash sweep programs may lead to a deterioration in their credit ratings. This threat looms particularly for firms like Morgan Stanley and Wells Fargo, as any potential ratings downgrade could escalate their operational costs amidst growing economic concerns. The controversies stem from these programs paying lower interest rates than alternative options for clients, leading to increased scrutiny and the need for firms to offer more diverse choices to avoid conflicts.
Source: YAHOO