Crane Data Subscribers
Wachovia Merger Likely Bad News for A.G. Edwards' Cash Sweep Rates. Saturday's Wall Street Journal features an article, "What to Watch
As Big Brokers Tie the Knot". The piece says, "A.G. Edwards customers also could see yields fall on their idle cash, which brokers park in so-called sweep accounts. According to Money Fund Intelligence, A.G. Edwards currently pays the highest rates among all major brokerages on "sweep" cash (4.64%), while Wachovia pays the lowest (1.00% or less). Friday's Journal piece on the merger said Wachovia's, "Mr. Thompson said he plans to boost the Edwards brokers' productivity, partly by shifting more client cash from money-market funds into its own insured bank accounts, where customers often get low rates but Wachovia can reinvest the funds more profitably."
