Not because the security wasn't safe, but because they held too much of it at an unprofitable rate, and effectively illiquid because of its maturity date. The

Not because the security wasn't safe, but because they held too much of it at an unprofitable rate, and effectively illiquid because of its maturity date. The likely reason you see banks offering high interest CDs, is because it facilitates them slowly rolling over their long term bond portfolios by attracting CD investment. Especially if they are beating the 1 yr treasury rate, they are losing money to lose less than they would rolling over their bonds. An unfortunate thing for the banks is that CDs aren't as attractive as they were in the past because technology (ETFs, internet brokers) have made treasuries more accessible