Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 12450
Markets: 96130
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Market Cap
24h Vol
12450
Cryptocurrencies
55.82%
Bitcoin Share
The Daily Hodl 2025-01-25 17:48:09

Wells Fargo and Merill Lynch Paying $60,000,000 Fine for Allegedly Shortchanging Customers While Making Bank on Client Cash

Wells Fargo and Merill Lynch Paying $60,000,000 Fine for Allegedly Shortchanging Customers While Making Bank on Client Cash

Two Wall Street titans are shelling out a combined $60 million to the U.S. Securities and Exchange Commission for allegedly serving their own interests at the detriment of clients. The SEC says Wells Fargo and Bank of America’s Merill Lynch failed to develop legitimate written policies and procedures for their cash sweep programs. According to the SEC, the two firms told advisory clients that they could only park their uninvested funds in bank deposit sweep programs (BDSPs) – an option that came with paltry payments despite a rising interest rate environment. Investment advisors typically tell clients who have not yet made investment decisions to move their funds into such programs. The accounts are designed to make uninvested cash work by generating interest instead of just letting the money lay dormant. The yields offered by these programs typically rise if the Federal Reserve hikes interest rates. But the SEC says Wells Fargo and Merill Lynch short-changed advisory clients after limiting the yields paid out by BDSPs at a time when the Fed was in the midst of a rapid rate-hiking cycle. “The orders find that these firms or their affiliates set the interest rates offered in the BDSPs and that, during periods of rising interest rates, the yield differential between the BDSPs and other cash sweep alternatives at times grew to almost 4 percent.” The regulator also alleges that the Wall Street firms made bank on clients’ uninvested cash by keeping BDSP yields low. Says Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, “Cash sweep programs impact nearly all advisory clients, who often pay advisory fees on assets held in these accounts. These actions reinforce that advisory firms must have reasonably designed policies and procedures to consider their clients’ best interest when evaluating potential sweep options for cash held in advisory accounts and to ensure that cash held in an advisory account is properly managed by financial advisers consistent with a client’s investment profile.” Wells Fargo and Merill Lynch settled with the SEC without admitting or denying the regulator’s findings. Wells Fargo has agreed to pay a $35 million civil penalty while Merill Lynch is set to cough up $25 million. The firms also consented to be censured and to cease and desist from further violations of the Advisers Act. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post Wells Fargo and Merill Lynch Paying $60,000,000 Fine for Allegedly Shortchanging Customers While Making Bank on Client Cash appeared first on The Daily Hodl .

Most Read News



Cryptohopper
Market Cap
24h Vol
55.82%
Bitcoin Share
560
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.