On July 28, a class action was filed in federal court in Philadelphia against Mellon Bank and its directors. The suit, Simpson v. Mellon Bank (or "Mellon III"), claims that the sweep fees" charged by the bank for investment of cash balances of trust accounts were so excessive as to violate the National Bank Act, the trust regulations of the Office of the Comptroller of the Currency, and the antifraud provision of thefederal securities laws.

By filing Mellon III, plaintiffs are trying to do indirectly what the federal courts have said they can't do directly -- federalize a state law claim for fiduciary mismanagement of a trust.

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