A threat by South Carolina regulators to shut down NationsSecurities operations in the state is expected to embolden other states in their regulation of bank brokerages.

"There's no question: A case like this will cause the legal wheels to grind in more states," said Karen L. Pletz, senior vice president of Central Trust Bank, Jefferson City, Mo.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.