Federal Regulators Reject Application for Colorado Marijuana Bank
DENVER, CO — A Colorado credit union is hoping a federal judge will intervene to let the booming marijuana industry move its finances from cash-stuffed suitcases to the regulated banking system.
A pair of lawsuits filed in Denver this week challenge recent decisions by the U.S. Federal Reserve and the National Credit Union Administration to deny applications from Fourth Corner Credit Union.
The credit union was set up last year to serve Colorado’s marijuana industry, but it needed permission from federal insurers and regulators before opening for business.
The Federal Reserve rejected Fourth Corner’s application earlier this month.
The decision means many pot businesses still use elaborate banking workarounds – from paying the power bill with money orders to spritzing skunky cash…
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