Pot Industry’s Bank Bid Rejected By Federal Regulators

COLORADO:  The Fourth Corner Credit Union is not allowed to accept any marijuana business until they get federally insured.

And this is the more reason the credit union is asking for equal access to the financial system so that marijuana businesses could operate without restrictions, because they are now at a disadvantage.

According to the Denver Post, the Fed’s rejection is the latest denial in a string of roadblocks which included the National Credit Union Administration’s denial of Fourth Corner’s application for deposit insurance. Some 400 financial institutions have filed thousands of marijuana-related reports with federal banking regulators in compliance with last year’s guidance. Therefore, the story said, federal concessions to requests like the one from Fourth Corner are few and far between.

As Colorado legalized marijuana for recreational and medical use, the substance remains illegal at the federal level.

Pot Problem: Banks Still Don’t Want This Cash

COLORADO:  The Fourth Corner Credit Union was created to serve the pot industry. It got state approval back in November, but is still waiting for a green light from the Federal Reserve. That typically takes weeks, not months for a new bank to get.

Recreational pot is legal in four states and D.C., and medical marijuana is legal in 19 other states. The hitch: Marijuana is still illegal on the Federal level, which also regulates banks.

That leaves pot shops in states like Colorado, where it’s legal, in a bind. Many banks won’t offer them accounts, leaving them stuck with piles of cash and nowhere to put it. Fourth Corner wants to change that.