Jacob Redmond
Well-Known Member
Gresham-based MBank made waves last year by announcing it would service cannabis businesses as the drug continues to be legalized in more states.
The move comes just months before Oregon's own legalization goes into effect on July 1.
The bank says it currently counts 70 clients in the young industry. It plans to deliver 60-day notices to the businesses today to let them know it will no longer offer banking services.
“MBank entered the business to provide quality banking services to a growing but underserved industry. However, through our experience the past nine months as a pioneer in this new business sector, we determined the bank is not big enough to provide and support all of the compliance components required," said MBank President and CEO Jef Baker in a prepared statement
Denied checking and credit services, pot entrepreneurs are forced to handle large sums of cash, which is cumbersome to account for and alluring to thieves.
"It's the most insipid, rudimentary form of doing business," Alex Rogers, owner and producer of the International Cannabis Business Conference and the Oregon Medical Marijuana Business Conference, and owner *edit*, told the Business Journal in February. "It's incumbent on Congress to change the banking laws."
In Portland, Baker's interest was piqued when he heard a federal regulator say the DOJ does "not object" to banks providing services to the marijuana industry. Baker decided early on to get his bank in the game, which prompted his announcement in late January that MBank would work with Colorado entrepreneurs.
The bank soon abandoned those plans citing a lack of capacity to service the demand.
Now, its leaving the arena entirely.
“We regret our exit from this business channel leaves them once again without banking services. This is not their failure or ours. It is yet another learning step as the banking and marijuana industry try to find solutions that work for all.”
Rep. Earl Blumenauer has formed a bipartisan working group to study the issue, but legislative help doesn't appear imminent.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Oregon's MBank to abandon cannabis lending, let 70 clients go - Portland Business Journal
Author: Mason Walker
Contact: masonwalker@bizjournals.com
Photo Credit: None Found
Website: Business News - The Business Journals
The move comes just months before Oregon's own legalization goes into effect on July 1.
The bank says it currently counts 70 clients in the young industry. It plans to deliver 60-day notices to the businesses today to let them know it will no longer offer banking services.
“MBank entered the business to provide quality banking services to a growing but underserved industry. However, through our experience the past nine months as a pioneer in this new business sector, we determined the bank is not big enough to provide and support all of the compliance components required," said MBank President and CEO Jef Baker in a prepared statement
Denied checking and credit services, pot entrepreneurs are forced to handle large sums of cash, which is cumbersome to account for and alluring to thieves.
"It's the most insipid, rudimentary form of doing business," Alex Rogers, owner and producer of the International Cannabis Business Conference and the Oregon Medical Marijuana Business Conference, and owner *edit*, told the Business Journal in February. "It's incumbent on Congress to change the banking laws."
In Portland, Baker's interest was piqued when he heard a federal regulator say the DOJ does "not object" to banks providing services to the marijuana industry. Baker decided early on to get his bank in the game, which prompted his announcement in late January that MBank would work with Colorado entrepreneurs.
The bank soon abandoned those plans citing a lack of capacity to service the demand.
Now, its leaving the arena entirely.
“We regret our exit from this business channel leaves them once again without banking services. This is not their failure or ours. It is yet another learning step as the banking and marijuana industry try to find solutions that work for all.”
Rep. Earl Blumenauer has formed a bipartisan working group to study the issue, but legislative help doesn't appear imminent.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Oregon's MBank to abandon cannabis lending, let 70 clients go - Portland Business Journal
Author: Mason Walker
Contact: masonwalker@bizjournals.com
Photo Credit: None Found
Website: Business News - The Business Journals
