Wells Fargo Sued Over Rates on Cash: ‘Enormous Fees’ for Bank, ‘Minimal Return’ for Customers

A Wells Fargo wealth management client is suing the company for alleged breach of fiduciary duty related to its cash sweep program, which pays customers interest rates as low as 0.05% on their uninvested cash.

The cash sweep program at Wells Fargo Advisors, the bank’s brokerage unit, generates “enormous fees for itself at the expense of its customers who receive only a minimal return on their cash deposits,” according to the legal complaint, which was filed by Keith Bujold on July 30 in a federal court in San Francisco.

…