Feb. 17 at 4:42 PM
$JPM Securities has failed to secure dismissal of consumer claims of underpaying interest on its bank deposit sweep programs, w/ a NY federal judge finding that customers plausibly alleged the banking giant breached a contractual promise to provide “a reasonable rate of interest”
The litigation hinges on deposit programs that automatically sweep uninvested cash on certain brokerage & retirement accts into interest-bearing accounts held by affiliated banks
Customers argued that instead of sending the cash to accounts paying market rates, whose rates reached 5.33% during the relevant period, JPMorgan swept the cash into accts paying near-zero interest & allegedly pocketed the difference.
The judge also pushed forward a breach of the implied covenant of good faith & fair dealing claim and a claim that JPMorgan breached a separate part of its banking agreements stating that the interest rates “will vary based on business & economic conditions”
Cases at
$BAC &
$WFC are pending -
$XLF
