Bank of America to pay $39,000,000 to settle Merrill Edge customers’ near-zero cash interest claims
AI Market Summary
Bank of America's $39M proposed settlement over Merrill Edge cash-sweep rates highlights litigation and compliance risk tied to broker cash management practices. While the amount is not material to BAC's financials, the case can draw scrutiny to deposit-sweep economics and customer disclosures across the brokerage industry. The agreement still requires court approval, limiting immediate market impact.
Impact level
● Low
Affected assets
NCSKBAC2USD/USDT-1.66%
AI Insight · NCSKBAC2USD/USDTAI Insight
● Neutral
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Bank of America has agreed to pay $39,000,000 to resolve allegations that its Merrill Lynch unit paid brokerage customers almost nothing on idle cash. Plaintiffs said Merrill Edge automatically swept cash into deposit accounts paying 0.05% to 0.14% a year, while other brokerages paid about 2% over the same stretch. They argued those rates violated agreements requiring a reasonable rate of interest. The settlement still requires approval from a U.S. judge.
