A rising variety of US banks are accused of routinely deceptive clients in a push to pocket billions of {dollars}.
JPMorgan Chase is now dealing with a proposed class motion lawsuit for allegedly shifting clients’ idle money into accounts with extraordinarily low rates of interest with out correct disclosure.
The financial institution joins Wells Fargo, Financial institution of America and others accused of utilizing money sweep applications to quietly transfer idle funding cash into accounts with near-zero rates of interest.
In his class-action go well with towards JPMorgan, Illinois resident Dan Bodea alleges the financial institution hid its actions and didn’t adequately clarify how its money sweep program works to be able to “generate substantial income for themselves with their clients’ money and helpful returns on such money, whereas paying their clients solely a small fraction of these returns.”
Latest filings show the U.S. Securities and Change Fee is probing Wells Fargo, Financial institution of America and Morgan Stanley over comparable allegations.
In the meantime, Wells Fargo, Charles Schwab, Morgan Stanley, Ameriprise, LPL Monetary, UBS and Financial institution of America’s Merrill Lynch subsidiary at the moment are dealing with numerous money sweep-related authorized battles.
Most banks, together with JPMorgan, have declined to touch upon the matter.
LPL Monetary has denied the allegations and says it is going to “vigorously” defend itself in court docket.
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