Besides hollow gestures by the federal government that said they are willing to let the banking industry to work with business in the marijuana industry, not long ago a denial of a Colorado credit union by the nation’s centralized banking operation implies a different behavior altogether.
Cannabis Credit Union a No Go
The Fourth Corner Credit Union in Denver applied this past year for a “master account” with the Federal Reserve that would have developed a go to banking location exclusively for the state’s marijuana industry.
Yet, after months of consideration, the feds eventually denied the credit union the ability to start conducting business like the rest of civilized America.
Not only would this first of a kind banking selection have provided cannabis business with a place keep millions of dollars in cash revenue, yet it would have also allowed cultivation operations and marijuana shops to be on the look out for loans and various other important financial solutions to promote proper growth. However, after submitting to months of grueling inquiries from the Fed, the credit union was denied.
Yet the result is not etched in stone for the credit union. According to the New York Times, Fourth Corner Credit Union, which has the backing of Colorado Governor John Hickenlooper, filed a federal lawsuit against the banking operation this past Thursday, insisting that the marijuana trade be given “equal access” to the centralized bank of the United States.
Attorney, Mark Mason states that throughout the whole application process, the Fed was looking for a smart way to deny their application. Currently, the organization is preparing to let a federal judge, well versed in “applying the law” make the choice.
“The Fourth Corner Credit Union (“TFCCU”) sued the Federal Reserve Bank of Kansas City and the National Credit Union Administration in federal court in Denver to get a fair and impartial hearing on its request for a master account,” Mason said in a statement.