SEC Investigates Wells Fargo's Cash Sweep Feature

Wells Fargo is facing an investigation by the Securities and Exchange Commission (SEC) over its cash sweep options for investment advisory clients. The sweep feature allows clients to earn a return on uninvested cash balances, with three sweep options available. The bank has been working to repair its compliance and reputation following previous scandals, but its efforts have faced renewed criticism. The SEC is currently scrutinizing the bank's hiring practices related to diversity, while the Justice Department has closed its investigation into the matter without taking any action. Wells Fargo remains under an asset cap imposed by the Federal Reserve and has several consent orders with regulators.