Still No Banks For Bud

German Lopez finds that it remains “very difficult — and potentially dangerous — to operate a marijuana business in Colorado” because “pot shops and producers still can’t work with banks”:

US Attorney General Eric Holder in February issued a memo that attempted to alleviate the banks’ concerns. But the guidance fell flat: it imposed such harsh regulatory and legal standards that banks deemed it too risky to begin loaning to marijuana businesses.

Recently, the Colorado legislature also passed a bill that would establish financial co-ops for marijuana businesses. These co-ops would act much like credit unions, except they wouldn’t get FDIC insurance like other financial institutions. That, state regulators and banks explain, is a death knell: Federal Reserve standards for banks require FDIC insurance, so the co-ops will most likely never muster the federal approval necessary to operate.

As banks and marijuana businesses see it, the issue can only be solved with clear, on-the-books congressional action. And with an issue as politically toxic as marijuana, it’s unlikely a dysfunctional Congress will do anything any time soon.

Earlier Dish on the subject here, here, and here.