Wells Fargo, Merrill Cash-Sweep Accounts Shortchanged Clients, SEC Alleges

Investment adviser units of Wells Fargo & Co. and Bank of America Corp.’s Merrill shortchanged customers by funneling uninvested cash into sweep accounts that benefited the banks but not their clients, the US Securities and Exchange Commission alleged Friday.

The firms paid $60 million to settle the claims without admitting to or denying the regulator’s allegations.