A Milwaukee bank has filed suit in federal court against Marsh& McLennan Companies claiming that its brokerage subsidiaryMarsh steered its insurance business in exchange for hiddenfees.
The suit, filed Dec. 16 in the U.S. District Court in Milwaukeeby Marshall & Ilsley Corp., charges that Marsh violated itsfiduciary responsibility by accepting commission fees in return forthe placement of insurance with certain companies. M&I said itwas unaware of the commission practice.
The company also asserts that Marsh benefited from the paymentof premiums to it directly, instead of the carrier, by placing themoney in a unit where it earned interest for the firm beforepayment was made to the insurer.
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