NEW YORK, NY / ACCESS Newswire / July 11, 2025 / National investment loss and securities law firm KlaymanToskes has filed FINRA arbitration claims against Merrill Lynch, a division of Bank of America (NYSE:BAC), on behalf of investors whose cash was negligently placed into low-yield Bank Deposit Program sweep accounts, earning as little as 0.15%, despite the availability of higher-yielding alternatives such as Certificates of Deposit (CDs), U.S. Treasuries, or Merrill’s own Preferred Deposit Program, which offered yields over 4% during the same period. Investors with $1 million or more in cash who suffered losses of interest income due to their broker or investment advisor’s negligence, such as failure to place cash in higher-yield alternatives, should contact the law firm immediately at 888-997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options.
KlaymanToskes is currently representing investors in FINRA arbitration claims against Merrill Lynch for its failure to act in the best interest of clients with substantial cash positions. According to a recent claim filed by the law firm (Case No. 25-01396) on behalf of a high-net-worth family, Merrill Lynch allegedly placed over $18 million into its Bank Deposit Program, yielding as little as 0.15%, resulting in millions in lost interest.
The law firm’s investigation found that Merrill Lynch knowingly and intentionally automatically swept clients cash positions into the Merrill Lynch Bank Deposit Program with the knowledge and intent to provide clients with low yielding cash accounts that were 4% to 5% below the going market rate. Once the clients’ cash was deposited into the Merrill Lynch Bank Deposit Program paying less than 1%, Merrill Lynch would then loan that money out to customers charging between 5% to 8.5%. Merrill Lynch would then pocket the spread of 4% to 7.5%.
KlaymanToskes found that despite the clients’ eligibility and Merrill’s access to higher-yield options, Merrill continued to maintain the clients’ cash in low-yield sweep accounts for extended periods, failing to act in the customers’ best interests. Merrill Lynch allegedly made millions through knowingly and intentionally under paying clients interest on their cash positions so the firm could maximize its profit at the clients expense.
Investors with $1 million or more in cash swept into low-interest accounts at Merrill Lynch and/or any other brokerage firm are encouraged to contact securities attorney Steven D. Toskes at (888) 997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $600 million in Securities Litigation and FINRA Arbitration matters. KlaymanToskes has office locations in California, Florida, Nebraska, New York, and Puerto Rico.
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Steven D. Toskes, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
investigations@klaymantoskes.com
SOURCE: KlaymanToskes, P.A.