The Federal Reserve Is Refusing to Endorse the Pot IndustryOctober 23, 2015 – In The News
Christopher J. Pippett was featured in the Yahoo Finance article “The Federal Reserve Is Refusing to Endorse the Pot Industry.” Full text can be found in the October 23, 2015, issue, but a synopsis is below.
The Federal Reserve has recently prevented a Colorado-based credit union from operating because of its intent to serve clientele in the medical marijuana industry. The Fourth Corner Credit Union had plans of supporting the growing industry with cash management issues stemming from the fact that they are unable to deposit money due to federal restrictions.
The credit union has filed a lawsuit against the Kansas City Fed after being denied an application for regulatory approval and insurance. The Fed has requested that a Colorado District Court dismiss the lawsuit due to restrictions placed on marijuana by the federal government.
According to Fox Rothschild’s Christopher Pippett, “The Fed’s hands are tied.”
He continues by stating, “The federal law governs their activities, and the Fed, just like any other bank, can't handle the proceeds of illegal activity."
Quotes can also be found in the VISTA.Today article, "Fox Rothschild Partner Says the Fed’s Hands are Tied When it Comes to Marijuana Banks".