Quote:
Originally Posted by Ecuadog
It might be as simple as the bank choosing not to register and explain its offering to that state, for whatever reason. It doesn't mean the bank was slapped.
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But, but, Ecuadog, I do so love a good verb.
Although you’re right with what you said about the choice of the bank not “to register and explain” probably being the reason for the Blue Sky showing up, I wondered why.
I did not know what Blue Sky meant, so I had to find out. There was a lot of info on the Investopedia site, and my reading of it was cursory because I could not buy the CD from that bank anyway. It is a long article, but well organized with good sub-headings.
I usually start with Investopedia as my first go-to when I want a simple explanation of a financial term. The opening paragraph of the article says that Blue Sky laws started for consumer protection.
I was also curious about why the laws were called “Blue Sky.” Investopedia said that the name goes back to the early 1900s when a Kansas Supreme Court justice wanted to protect investors from speculative ventures — about which he is quoted as having said, “had no more basis than so many feet of ‘blue sky.’”
The bricks and mortars of the bank are throughout Ohio and there are some in Florida, too, so obviously they do business inside those states and have been for a while.
If the bank chose not to “register and explain” the details of their investment of the money “loaned” to them by CD buyers — why?
I am not saying there was anything wrong. . .could have been a number of things, like maybe the bank wanted only institutional investors for that particular CD. . . Or maybe the fact that the term was only for 3 months and a quick turnaround of profit was tentatively in the making, so the risk might be more of an issue. (The CD was covered by the FDIC, of course. I would not buy without that.. .but. . .still. . .what was it?)
Whatever it was, it surprised me when I was all set to buy their 3 month CD, but OH, TX, and FL showed up to say “Blue Sky.”
In 2018 there was a rollback of some of the banking regulations that had been put in place in July of 2010 when the fiasco that brought the collapse of the housing market and the hit on the stock market were still fresh in the minds of Americans.
Anyway, even though I am buying brokered CDs right now, I can’t say that I don’t worry about banks — not staying awake at night — but not an amnesiac either.
Oh well, enough over-thinking and typing exercise me this morning. I must get on with my real life.
(If you lasted this long reading my wondering, hey, thanks. If you would like to know more about Blue Sky laws, the Investopedia site will tell you far more than you probably ever wanted to know.)
Boomer