Editor's Note: As The Denver Post reports, mBank has revoked its decision to offer services to legal marijuana businesses in Colorado just one week after making the announcement that it would offer the services. If this isn't an indication of the challenges that plague legitimate businesses trying to operate within the law, I don't know what is. Something needs to be done about the banking situation in this industry–which is now the fastest-growing industry in the U.S. The banks want the money, and the businesses need banking services.Â
The Oregon community bank that a week ago openly welcomed Colorado marijuana industry customers has changed its mind, publicly saying it doesn't have the infrastructure to handle the overwhelming response for service.
But people familiar with the move say the retreat was pressed by federal banking regulators who stepped in late last week to tell MBank executives that crossing several states to work with an industry that remains illegal under federal law was simply too risky.
"Following national press, the volume of inquiries in Oregon, Washington and Colorado has been so overwhelming that we don't currently have the infrastructure to adequately support all these customers," MBank CEO Jef Baker said Monday.
