Bank of America agrees to pay $39 million to settle Merrill Edge cash-interest claims

Bank of America has agreed to pay $39 million to settle claims that its Merrill Lynch unit paid brokerage customers almost nothing on idle cash. Merrill Edge is Bank of America's online brokerage. The proposed settlement was filed in Manhattan federal court and covers Merrill Edge online accounts, Reuters reported. Plaintiffs say the firm automatically swept customers' cash into deposit accounts paying 0.05% to 0.14% a year. Plaintiffs say other brokerages paid about 2% over the same period. Plaintiffs say the rates violated agreements requiring a reasonable rate of interest. The proposed settlement covers Merrill Edge account holders from December 15, 2016, to March 15, 2020. The deal avoids a trial that had been set for mid-October. The deal still needs approval from U.S. District Judge Valerie Caproni. Merrill Lynch denies wrongdoing. Similar sweep-account cases have had mixed results, including a recent $70 million settlement with Oppenheimer & Co.