Wells Fargo’s wealth management unit increased interest rates it pays on client cash in sweep accounts, a change that is expected to reduce net interest income by about $350 million this year, executives said Friday.
The policy shift affects sweep deposits in advisory brokerage accounts, CFO Michael Santomassimo said during an earnings call with analysts. Responding to questions, Santomassimo said the move was not a response to competitive forces.
“This…
