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Anecdotal Perspectives on Banking and
Towards the Legal Cannabis Industry
An important component of the US banking industry’s (as well as other corporate institutions’) unwillingness to provide service to or transact with the legal cannabis industry may be institutional prejudice. Bankers assert that their reticence is based upon fear of losing FDIC or NCUA insurance, federal prosecution and/or excessive costs but it may be more based upon their apparently irrational unwillingness to become well informed on the risks and opportunities, combined with an institutional ‘herd’ mentality that governs their decision-making.
This at least partially explains why traditional approaches of presenting the merits seem, as often as not to fall on deaf ears.
Some of my recent related observations and experience bolster this perspective:
It is advisable to be aware of this likely institutional prejudice when negotiating with US financial institutions (as well as other corporate US institutions). I’ve often been most successful when I overcome this objection first before attempting any substantive discussions on the merits.