Brokered CDs in Ohio and Texas

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sport
Posts: 11395
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Brokered CDs in Ohio and Texas

Post by sport »

When looking at the offerings of brokered CDs, there are some that are available in all states except Ohio and Texas. Why are these states different from all other states?
talzara
Posts: 2901
Joined: Thu Feb 12, 2009 7:40 pm

Re: Brokered CDs in Ohio and Texas

Post by talzara »

sport wrote: Wed Nov 23, 2022 4:52 pm When looking at the offerings of brokered CDs, there are some that are available in all states except Ohio and Texas. Why are these states different from all other states?
The issuer decided that it's not worth the cost to comply with blue sky laws in Ohio and Texas.

It could be any state, but Texas is the most common one. Here is a thread from 2018 about CDs that are restricted in certain states: viewtopic.php?t=237417
Topic Author
sport
Posts: 11395
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Re: Brokered CDs in Ohio and Texas

Post by sport »

I believe that some banks do not want to offer CDs in states where they have branches because they don't want to compete with the low rates at the branches. However, Texas and Ohio often show up when this would not apply. Texas and Ohio must be either expensive or difficult. This causes some otherwise good CDs to be unavailable to residents of those states. :annoyed
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