NEW YORK (Reuters) – JPMorgan Chase has been accused in a brand new lawsuit of sweeping consumers’ idle money into accounts with “unreasonably” low rates of interest.The proposed magnificence motion towards the biggest U.S. financial institution was once filed on Friday night time in Ny federal courtroom.It adopted an identical court cases towards different banks and brokerages together with Ameriprise, LPL Monetary, Morgan Stanley, UBS and Wells Fargo.JPMorgan declined to touch upon Monday.Illinois resident Dan Bodea alleged that JPMorgan has used its money sweep program to shortchange consumers, whilst pretending to behave as their fiduciary and reaping “oversized advantages” for itself.The lawsuit seeks unspecified compensatory and punitive damages for JPMorgan’s alleged breaches of fiduciary accountability, gross negligence and unjust enrichment.Bodea didn’t specify JPMorgan’s rates of interest on uninvested money or how its payouts evaluate with the ones of opponents.Some brokerages be offering sweep charges neatly above 4%, at a time U.S. Treasury expenses maturing inside 3 months nonetheless yield greater than 5%.Attorneys for Bodea didn’t in an instant reply to requests for remark.Morgan Stanley and Wells Fargo stated this month that the U.S. Securities and Alternate Fee has been investigating their money sweep practices, and Wells Fargo stated it was once in agreement talks.Remaining month, Wells Fargo stated it higher pricing on sweep deposits overdue in the second one quarter, and that this may most probably decrease long term internet hobby source of revenue.The case is Bodea v JPMorgan Chase & Co et al, U.S. District Courtroom, Southern District of New York, No. 24-06404.(Reporting through Jonathan Stempel in New York; Modifying through Invoice Berkrot)
