E*Trade, Morgan Stanley Face Class Action Over Undisclosed Automatic Account Transfers

E*Trade and Morgan Stanley are facing a consumer class action accusing the Wall Street banks of automatically transferring uninvested funds to affiliate banks that yield minimal returns without adequately disclosing the practice to their customers.

Takeaway: This suit is part of a wave of cases accusing banks of automatically transferring customer’s uninvested cash balances into accounts with “unreasonably” low interest rates.