A Colorado credit union wants the states’ marijuana industry to bank with it. Its fate, however, is up to a federal judge after Fourth Corner Credit Union filed a pair of lawsuits in Denver this week against the US Federal Reserve and the National Credit Union Administration. The two federal institutions denied the Credit Union’s applications to serve the marijuana industry.
Fourth Corner, chartered by the State of Colorado Division of Financial Services in November 2014, was created to serve the state’s marijuana industry. The credit union has waited on the okay from federal insurers and regulators before opening for business. But this effort was recently derailed.
In a July 2 letter, the National Credit Union Administration wrote that the marijuana industry “does not have an established track record of success and remains illegal at the federal level.” A couple of weeks later, the Federal Reserve rejected Fourth Corners application for a “master account.” And so, the credit union filed two lawsuits on Thursday challenging the decision.
Many marijuana businesses have operated unbanked due to a lack of options, opening owners and employees up to robbery and theft. The US Treasury Department