Legal California weed could lead to public banking


#1

Originally published at: http://boingboing.net/2017/08/23/legal-california-weed-could-le.html


#2

I am still shocked no other banking system hasn’t cropped up to support the legal weed industry. This is just fucking money for the taking. Yes it wouldn’t be FDIC insured. Yes the depositors would have some risk, but I would think it would have to be less of a risk than safes of stealable cash. This is a huge fucking pile of money, here. If I were rich I would totally take the gamble of opening said bank.


#3

My first thought is “that will never happen”, because even though most people are in favor of the reality of obviously sensible ideas like that, what always wins the day is our Pavlovian conditioning to pee our pants at the word “socialism”. If even a small number of Republicans opposed it, they only have to say “that’s a socialist idea” and it will be dead in the water.

Which is fucking insane, and I do not understand how anyone can cope with the ever-louder cognitive dissonance, but millions of them do.


#4

Let’s hope the millennials ruin that too.


#5

There’s at least one medical marijuana distributor in my area which now takes debit cards through a local credit union. I imagine more and more of that will take place rather than toting around literal moneybags.


#6

How is it a socialist idea? It’s free enterprise. There are a lot of private banks and credit unions out there.


#7

An owner of a dispensary explained it to me a few years ago. I’ll write this poorly, because it was a while ago. Basically, because banks must be FDIC insured, they are subject to federal law or risk losing their FDIC status and ability to do banking. Because weed is still a schedule 1 substance, that is the risk they would take for accepting dispensary money. Some banks have made exceptions, but most have not wanted to take on the risk of having to litigate a challenge.


#8

Right, there would be a risk they could be shut down. But, what sort of risk? Doing so might lead to some serious legal challenges. Right now the DEA COULD technically crack down on ALL of the legal weed out there. I am thinking in places like Colorado and the like, one could take deposits from weed dealers and while technically put themselves at risk, not actually face legal action against them.

I could be wrong, but like I said, if I had a million dollars to start something like that, it would be a gamble I would take.


#9

There are major banks that are headquartered in California and wield enormous political influence. I highly doubt that the state legislature could shift into permitting a public bank.
More than likely the state will be fine accepting bags full of cash at the tax office. As it is preferable to upsetting Wells Fargo.


#10

Under Obama, the risk was low. Now with Trump and Sessions, the risk is much higher.

My friend was in CO, and he was actively exploring ways to legitimately deposit his money via credit unions, or other legal methods. He had a huge friggin safe bolted to the foundation in the back of his shop. He showed it to me. It wasn’t full of cash, but it was “filling.” He was annoyed because he is constantly up against the wall to pay rent for the business, his house, and pay his employees and Uncle Sam… and pretty much all he has on hand, EVER, is stacks and stacks of cash. He needs a bank account. He says he has a bank account with a few thousand dollars in it, but he guards that virtual money with his life! So ack basswards!!! Meanwhile, the CO regulators are constantly coming through, inspecting. So he doesn’t want to do anything illegal with the money. It’s completely nuts. I think he did solve the problem through a credit union that was willing to take his deposits, but I haven’t checked in with him in a while what happened.


#11

@Mister44 @anon89609066 I suspect that details such as access to the interbank networks, audit companies and so on are also stumbling blocks to starting First Bank of Cheech & Chong.

Theres also the issue of keeping said bank in business which involvement in the weed trade may well complicate.


#12

I was responding to the OP…


#13

Because it’s not tied down to the special interests of either party. In theory it is socialistic in the much older sense of socialism before Marxist-Leninism (think Mutualism and Syndicalism) but in practice it works within existing economies that are capitalistic. What makes it socialistic is the fact that the money doesn’t wind up in the hands of the few with respect to the financial sector. It’s a small wonder that credit unions haven’t been vilified yet considering most are owned by their account holders.


#14

Ah, banking like Glass–Steagall was still the law.


#15

Can we just get those ruskie c!ckholsters out of office? Jefferson Beauregard Secessions thought the KKK were good ol boys until he learnt they smokes the whacky tobacky! (fainting couch enters stage far right)

Anything to put the screws to the blah people. And the libs n lefties.


#16

Stoner Banker: Have you ever stopped to think about how money is just, like, this shared illusion?


#17

Legal tender for all debts public and private. Not sure the state has a choice on this one.


#18

#19

I pay about $50 an ounce in San Diego for mid shelf ganja. I hope their business model is secure enough to sustain any slumps.


#20

Like I said, I am clear on how this is a gamble, but I’d take it. Stealing cash from traffic stops is one thing. Taking money from an actual cash bank - eh… not sure if that would fly.