Following the decision to legalize marijuana, Colorado weed sellers are awash in cash (and the cartels are selling cheap heroin in response). But they have no place to put their cash because banks worry about federal money laundering prosecutions even though Holder issued a memo saying that DOJ would not prosecute. The banks, rightly, were not mollified. Selling marijuana is a federal crime as is money laundering and someday (like today) Holder will be gone.
So Colorado chartered the Fourth Corner Credit Union to take dope money. The problem for Fourth Corner is that it must get a master account from the Federal Reserve System that would allow it to clear checks and transfer funds within the nation’s money system. So far as I know, the application is still pending and has not been issued, although a Fed representative has recently met with “industry” representatives to hear their sad stories about drowning in cash. There is also the related question of whether Fourth Corner, being a state charted institution, can gain insurance from the Federal Deposit Insurance Corporation. (FDIC)
This seems like a no-brainer to me for the Fed and the FDIC. Deny the application and refuse to issue insurance. Until and unless Congress changes the criminal law, stoner banks will not be federally authorized to help Colorado dealers commit federal crimes.
Reminder to stoners and those who support them: The rule of law only matters when you don’t like the result.
Correction: Because it is a credit union, Fourth Corner Credit Union cannot get insurance from the FDIC. It might try to get insurance from National Credit Union Administration (NCUA), another federal agency. The same reasoning expressed in the text–federal agencies ought not assist in the commission of federal crimes–would apply to the NCUA.