Bank of America Unit Agrees to Pay $39M in Interest Rate Lawsuit Settlement
Bank of America's Merrill Lynch unit has agreed to pay a $39 million settlement over allegations that it paid near-zero interest rates to brokerage customers, according to Reuters. The lawsuit claimed the bank failed to pass on higher market rates during periods when short-term interest rates were elevated. The financial institution faces scrutiny for its handling of customer accounts and compensation practices amid broader regulatory focus on banking conduct. Shares of Bank of America fell slightly in pre-market trading following news of the settlement, though the decline was modest at 0.24% to $54.30 per share.
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Topics: Bank of America interest rates lawsuit settlement Merrill Lynch