Marijuana banking

Citing insurance concerns, Anchorage-based Credit Union 1 shut down its marijuana-banking pilot program after less than one year. The move reflects lingering hesitation around banking the industry.

The $35 million-asset credit union was one of just five entities bidding to serve the Mountain State’s medical cannabis program.

When lawmakers return from their August recess, a host of unresolved financial policy issues — from marijuana banking to anti-money-laundering rule — will greet them.

Nonbank lenders Monroe Capital and MGG Investment Group have made a combined $115 million of loans to firms that make cannabidoil and supply products to the cannabis and hemp industries.

Sen. Mitch McConnell had contacted the National Credit Union Administration about the troubles Kentucky hemp farmers had in accessing capital.

The 2020 election is shaping up to be a key yardstick for legislation expanding cannabis firms’ financial services access.

A fintech called NCS Analytics wants to analyze power-use data at cannabis businesses for banks that finance them. It says the information can help expose illegitimate activity.

Rachel Pross, chief risk officer at Maps Credit Union, told the Senate Banking Committee the inability for more banks and CUs to safely serve the legal pot industry is having an effect on ancillary businesses.

Lawmakers will hear from a credit union executive on cannabis banking while also considering issues such as the use of alternative data in underwriting.

Readers react to House lawmakers attempting to overhaul the credit bureaus, express sarcasm to the Senate Banking Committee eyeing cannabis banking, criticize Sen. Elizabeth Warren's plans to overhaul Wall Street and more.