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Legal Marijuana Businesses Should Have Access to Banks, Holder Says

79 pointsby asnyderover 11 years ago

14 comments

nlhover 11 years ago
Why is there still such resistance at the highest levels to legalization &#x2F; decriminalization?<p>Obama and Holder have made it pretty clear (at least personally) that they don&#x27;t see marijuana as a risk, and yet when the discussion about removing it from Schedule 1 status comes around, the answer seems to be &quot;no&quot;.<p>Why is this? Obviously politics, but I&#x27;m curious where the big resistance is coming from. What would happen if Obama just said &quot;You know what, we&#x27;re taking it off Schedule 1 status. Done.&quot; Who would fight back and why?
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gueloover 11 years ago
And yet Holder refuses to reign in his attorney for Northern California, Melinda Haag, who has been aggressively raiding and shutting down legal California dispensaries. She is currently trying to seize the property of a large Oakland dispensary prompting Oakland city government to intervene to try to prevent it. She refuses to drop the prosecution even after everything that has happened in Colorado and Washington and the statements by Obama and Holder.
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reuvenover 11 years ago
I don&#x27;t live in the US (although I&#x27;m a citizen), I don&#x27;t smoke pot, and never have. But I find this to be a completely fascinating set of circumstances, and one which is leading to confusion and a lack of standardized rule of law.<p>You basically have federal US laws outlawing anything having to do with marijuana, and many people serving jail time for having possessed, grown, or distributed it.<p>You also have states that have said it is completely legal to possess, grow, and distribute it. Right there, that strikes me as a weird combination: Don&#x27;t federal laws trump state ones? (And wasn&#x27;t this sort of a central part of the Civil War, that states can&#x27;t just make up their own laws that contradict federal ones?)<p>The federal government is now saying, &quot;Don&#x27;t worry about those laws on our books. We won&#x27;t prosecute you.&quot; They&#x27;re even saying, in this article, that they won&#x27;t prosecute banks. (Well, after the regulations are clarified.)<p>But that strikes me as an extremely inconsistent message, and one which can change at any point in time. If everyone believes Holder, but then Holder changes his mind a year from now... well, then there&#x27;s nothing you can do, because he is doing nothing more than enforcing the laws -- laws that have been around for many years, and didn&#x27;t come as a surprise to anyone.<p>Moreover, what happens when another president or attorney general comes into office, and decides to enforce these laws to the max? You&#x27;ll have banks, growers, and others suddenly prosecuted for federal crimes just because someone else came into office.<p>I think that these problems are likely to continue, until and unless marijuana use is decriminalized at the federal level. Which, given the state of US politics right now, doesn&#x27;t strike me as very likely.
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pstuartover 11 years ago
This, and Obama&#x27;s recent admission that cannabis is not dangerous is a hint from the administration that the Feds will cave sooner rather than later (in political time, that is). Once enough states go legal they will have no choice in the matter.
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erikpukinskisover 11 years ago
Huge amounts of cash not being deposited surely worries banks&#x27; shareholders too.
kolbeover 11 years ago
Given how the US has treated JP Morgan in the past couple years, it would be stupid of any bank to partake in any illegal activity simply based on this:<p>&quot;The rules are not expected to give banks a green light to accept deposits and provide other services, but would tell prosecutors not to prioritize cases involving legal marijuana businesses that use banks.&quot;
dr_doomover 11 years ago
Our governor in Texas recently said he is working toward decriminalization. Change is coming.<p><a href="http://www.mysanantonio.com/news/local/article/Gov-Rick-Perry-for-decriminalization-of-pot-5168667.php" rel="nofollow">http:&#x2F;&#x2F;www.mysanantonio.com&#x2F;news&#x2F;local&#x2F;article&#x2F;Gov-Rick-Perr...</a>
milesokeefeover 11 years ago
It makes sense that banks don&#x27;t want a part in it until it&#x27;s legal on the federal legal.
nmoduover 11 years ago
One key component that neither the article nor the commenters have explicitly mentioned is the threat that cartels pose to the the legal marijuana business.<p>Since legalization could potentially eat away at a sizable chunk of a cartel&#x27;s marijuana revenue stream [1], dispensaries already run the risk of being targeted by cartels&#x2F;gangs. The fact that these dispensaries are forced to hold large cash balances in their back rooms makes them even more appealing as a potential target.<p>[1] <a href="http://www.cbsnews.com/news/study-us-marijuana-legalization-would-hurt-mexican-cartels/" rel="nofollow">http:&#x2F;&#x2F;www.cbsnews.com&#x2F;news&#x2F;study-us-marijuana-legalization-...</a>
ergoproxyover 11 years ago
Illegal drug businesses already have access to Banks. Quoting from another NYTimes article (January 2, 2013): &quot;LAST month, HSBC admitted in court pleadings that it had allowed big Mexican and Colombian drug cartels to launder at least $881 million.&quot; Source: <a href="http://www.nytimes.com/2013/01/03/opinion/how-bankers-help-drug-traffickers-and-terrorists.html" rel="nofollow">http:&#x2F;&#x2F;www.nytimes.com&#x2F;2013&#x2F;01&#x2F;03&#x2F;opinion&#x2F;how-bankers-help-d...</a>
josefrescoover 11 years ago
&quot;To try to keep the banks from catching on, he said, he even sprays his cash with Febreze to disguise the scent of marijuana.&quot;<p>Wow, somewhere there&#x27;s a storage locker (probably more) with a stack of cash just like we all saw on Breaking Bad. Except this cash was made &quot;legally&quot; and yet the owners still have to operate like an illegal enterprise just to pay bills and employees.
iamwithnailover 11 years ago
Absolutely gobsmacked that they <i>don&#x27;t</i> have access to banks. Incredible scenes.
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spiritplumberover 11 years ago
Anything that makes the banks less relevant is good in my book.
excellence24over 11 years ago
Be your own bank and use bitcoin in the meantime
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