BofA Unit Settles Cash Sweep Suit for 39 Million
Bank of America unit Merrill Lynch agreed to pay 39 million dollars to settle a class action over low interest rates on idle cash. Meanwhile, the firm was ordered to face a separate similar lawsuit in Manhattan federal court.
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BANK OF AMERICA CORP's Merrill Lynch unit agreed to pay $39 million to settle a class-action lawsuit over cash sweep interest rates. The preliminary accord resolves claims from retirement account holders in the United States over low payouts. The settlement comes as financial institutions face heightened scrutiny over cash sweep yields from accounts.
