Wachovia Securities has been added to a lawsuit challenging the legality of firms’ bank deposit sweep programs.
The company was added to the case in an amended claim filed yesterday with the U.S. District Court for the Southern District of New York.
As reported in the current (InvestmentNews, June 11)
issue of InvestmentNews.
Merrill Lynch, Morgan Stanley, Smith Barney and Charles Schwab are also being sued for moving client cash into lower paying The suit claims Wachovia had about $30 billion in its deposit sweep program as of the end of 2004.
Since then, the firm hasn't clearly disclosed the assets in its program, the filing says.
Wachovia also plans to put assets of A.G. Edwards customers into its depositsweep program, the claim adds.
Last month Wachovia announced its intention to buy A.G. Edwards.
Wachovia spokeswoman Teresa Dougherty declined to comment.