Pennsylvania State Treasurer Barbara Hafer has announced plans to launch BidPA, an on-line auction platform allowing Pennsylvania banks to competitively sell Certificates of Deposit to the Treasury Department. Treasurer Hafer will hold two back-to-back auctions on a monthly basis for 3 month and 6 month CDs. The first two auctions will be held on Wednesday, September 26.
"By creating the on-line auctions, we advance Treasury's goal of investing locally whenever possible to encourage economic development within the state and, at the same time, we benefit Pennsylvania financial institutions and Pennsylvania taxpayers", said Hafer. "The auctions create a level playing field for qualified financial institutions to compete for state investments, while helping to ensure that we are getting the best return for the taxpayers."
"Treasurer Hafer is the first State Treasurer in the country to conduct Internet auctions for two different CD maturities, and consequently, we expect Pennsylvania will have more bidders than any other state - which can only result in better rates," said Myles Harrington, President and Co-Founder of Grant Street Group.
The Grant Street Group has created similar private-label websites for five other states -- Ohio, South Carolina, Texas, Louisiana and Idaho.