Wells Fargo Sued Over Alleged $4 Billion Cash Sweep Profits

Wells Fargo & Co. breached its fiduciary duties to its customers by paying them only nominal interest on their cash accounts while making $4 billion in net interest from those accounts in 2023, a class action complaint filed in federal court says.

Net interest income is the difference between the amount of interest that Wells Fargo pays to or secures for the benefit of its brokerage and advisory clients and the amount of interest the bank and its affiliates earn on those cash balances themselves, according to the complaint filed in the US District Court for the Northern District of ...