The spate of regulatory investigations into wealth managers’ cash sweep programs could hurt their credit ratings, Moody’s Ratings warned on Thursday, underscoring the threat to the high-margin business for firms like Morgan Stanley (MS.N), opens new tab and Wells Fargo (WFC.N), opens new tab.
WHY IT’S IMPORTANT
A potential ratings downgrade would increase the costs for wealth managers at a time when worries about the economy are growing, with some forecasting a downturn due to the tight monetary policy.
Source: REUTER
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