The Obama administration on Friday issued guidelines intended to give banks confidence that they will not be punished if they provide services to legitimate marijuana businesses in states that have legalized the medical or recreational use of the drug, even though it remains illicit under federal law.
—New York Times
Marijuana businesses that are legal in some states (but illegal according to federal law) have a big problem — they can’t use banks or credit cards, so they have to handle piles of cash and are vulnerable to robberies and violence. The federal government has already agreed not to prosecute them for dealing in drugs, and it now realizes that the laws prohibiting banks from doing business with them are creating a public safety hazard.
So both the Treasury and Justice Departments issued some guidance to try to help the situation. Banks are still not legally allowed to do business with marijuana-industry customers, but if they monitor and report the activities of those customers they should be safe. Prosecuting the banks will be low priority.
Why are the banks not reassured? What could possibly go wrong?
February 17, 2014
American banks are no longer in the banking business as we originally understood the term. Perhaps that is why they are not reassured.
http://www.rollingstone.com/politics/news/the-vampire-squid-strikes-again-the-mega-banks-most-devious-scam-yet-20140212
The article (your link) is very interesting (& upsetting).
I don’t get upset (at anything anymore). The “upsetting” is to say -not good.
Unfortunately the days of bankers being stodgy, conservative types are long gone.
The federal government telling banks that it will not enforce the law of the land doesn’t change the law of the land. The next administration could decide to enforce the laws. If that happened, then banks would be in trouble.
It’s highly irresponsible, in my view, to tell anyone that they wouldn’t be prosecuted if they violate the law and, even worse, to establish it as policy — but, with this administration, I can’t say that I’m surprised.
So much for the rule of law. I agree — the bankers would be crazy to violate the laws. Andy and I like things in writing, not just some “trust-us” promises, especially ones that encourage illegal behavior.
Oh my.
Yes.
Oh my oh my.
I’ll stand back & watch what happens & try not to get “pissed off” .
We live in crazy times.
The rot is very deep. http://dealbook.nytimes.com/2014/02/17/3-former-barclays-employees-accused-in-libor-scandal/?_php=true&_type=blogs&nl=afternoonupdate&emc=edit_au_20140217&_r=0
Andy and I have been getting Fortune, Forbes, and the Wall Street Journal for years, so we’re not surprised.
http://www.nytimes.com/video/business/100000002716791/warning-from-ex-jpmorgan-official.html