OREGON: Just two months after Oregon-based MBank pulled back on a promise to work with the marijuana industry in Colorado, the $170-million institution said it is dropping its cannabis clients entirely.
CEO Jef Baker said MBank doesn’t have the “resources necessary to manage the compliance” requirements for banks maintaining accounts with legal marijuana businesses.
But others familiar with the bank’s situation said the move from the marijuana space was forced by regulators who recently audited bank records over an extended period, eventually downgrading the institution’s rating and indicating marijuana deposits might be too risky to handle.
The bank has been under scrutiny because of a prior consent agreement with federal regulators that was the result of financial problems it had a few years ago. But now, regulatory examinations that normally were taking about two weeks suddenly were taking six, according to people familiar with that process.