Tuesday, May 25, 2010
Bank of America and Wells Fargo Denying Service To Dispensaries
Regulation & Legislation David Downs — Tue, May 25, 2010 at 6:02 AM
Turning around seventy years of failed drug policy in America is like making an aircraft carrier do a U-Turn. It takes a while, even after the steering wheel is moved. So even though the Department of Justice has stated that it could care less about medical marijuana, the Treasury Department has been telling banks they could be prosecuted for serving dispensaries. Bloomberg is reporting on a letter sent from Congress to Treasury, wherein fifteen members of Congress ask Treasury to stop telling banks that. Turns out, Bank of America and San Francisco-centered Wells Fargo have been routinely denying banking services to dispensaries, ostensibly to protect themselves against federal prosecution.
Democratic Congressman Barney Frank of Massachusetts instructed Treasury to issue guidelines to America’s banks saying that the federal government won’t go after them for servicing medical marijuana enterprises in states where it is legal. “If states want to make it legal or not, it should be a state matter,” Frank said in a telephone interview. “It’s wrong for the banks to be told by Treasury they can’t service them the way they would service any other business.”
Even if Congress gets Treasury in line, the DEA's budget and mission hasn't changed, let alone the vestigal policies at the DOC, DOT, NIDA, ... you get the point. The fight goes on.
Comments (2)
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Knowing Brian Garrett he went down to these Clubs and rolled up one to try the product out while discussing the business proposition. bankalchemist.
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These are National Banks and under the supervision of the OCC which is a division of the Treasury. Being this is a National issue they are precluded from this activity. That said Ca State Banks are not. Community Bank of the Bay is a Ca State Bank in Oakland Ca. Brian Garrett knows how this is done, bgarrett@communitybankbay.com bankalchemist.
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