Jim Finnel
Fallen Cannabis Warrior & Ex News Moderator
Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) have been continually denying their services to medical marijuana dispensaries in order to protect themselves from prosecution by the federal government.
The country has long history of failed drug policies and now that there is a turning around, the situation has been confusing banks. The Department of Justice has stated they are not interested in medical marijuana facilities. The Treasury Department has been telling banks to not lead to marijuana dispensaries or they could face federal prosecution.
In a recent letter sent from Congress, fifteen members have requested that the Treasury Department stop warning banks. Massachusetts Democratic Congressman Barney Frank has issued American banks a list of guidelines they are to follow when serving legal medical marijuana dispensaries. The letter states that the federal government will not go after the banks in legal states. The Congressman believes it is wrong for the Treasury to tell national banks they can not service dispensaries in the same way they would offer services to other businesses.
As a result of the warnings, the operators of the medical marijuana dispensaries are finding it harder to secure business relationships with many of the national financial institutions. There has been willingness from state-chartered banks to work with the medical marijuana businesses owners, provided the pot operations are legal.
Currently, 14 states have made medical marijuana legal. Those who have given the green light have done so out of medical compassion or the dependence on the tax revenues the pot places provide. Many more states are still considering the legalization of marijuana for medical reasons. California voters will cast their ballots in November to decide whether or not recreational use is also going to be made legal.
The growth and distribution of marijuana is still by federal standards illegal and many of the national banks won’t touch the operations including Chase and US Bank. Wells Fargo stopped all new account openings this month and will be reviewing any existing accounts the bank still has with medical marijuana operations.
NewsHawk: User: 420 MAGAZINE
Source: americanconsumernews.com
Author: tisha
Copyright: 2010 American Consumer News, LLC
Contact: Contact : American Consumer News
Website: Bank of America (NYSE: BAC) Balks at Medical Pot Backing
The country has long history of failed drug policies and now that there is a turning around, the situation has been confusing banks. The Department of Justice has stated they are not interested in medical marijuana facilities. The Treasury Department has been telling banks to not lead to marijuana dispensaries or they could face federal prosecution.
In a recent letter sent from Congress, fifteen members have requested that the Treasury Department stop warning banks. Massachusetts Democratic Congressman Barney Frank has issued American banks a list of guidelines they are to follow when serving legal medical marijuana dispensaries. The letter states that the federal government will not go after the banks in legal states. The Congressman believes it is wrong for the Treasury to tell national banks they can not service dispensaries in the same way they would offer services to other businesses.
As a result of the warnings, the operators of the medical marijuana dispensaries are finding it harder to secure business relationships with many of the national financial institutions. There has been willingness from state-chartered banks to work with the medical marijuana businesses owners, provided the pot operations are legal.
Currently, 14 states have made medical marijuana legal. Those who have given the green light have done so out of medical compassion or the dependence on the tax revenues the pot places provide. Many more states are still considering the legalization of marijuana for medical reasons. California voters will cast their ballots in November to decide whether or not recreational use is also going to be made legal.
The growth and distribution of marijuana is still by federal standards illegal and many of the national banks won’t touch the operations including Chase and US Bank. Wells Fargo stopped all new account openings this month and will be reviewing any existing accounts the bank still has with medical marijuana operations.
NewsHawk: User: 420 MAGAZINE
Source: americanconsumernews.com
Author: tisha
Copyright: 2010 American Consumer News, LLC
Contact: Contact : American Consumer News
Website: Bank of America (NYSE: BAC) Balks at Medical Pot Backing
