DENVER—Deirdra O'Gorman is now leading the first CU to serve the marijuana industry, according to a published report.
The Fourth Corner CU’s first CEO told Colorado Public Radio that the CU hopes to open its doors soon. However, it still needs deposit insurance and a master account from the Federal Reserve to begin operating.
CUToday.info recently reported that obtaining share insurance may be difficult for The Fourth Corner, which has been issued a state charter to operate. Apparently, the CU’s application for NCUSIF coverage is being complicated by the fact the sale and consumption of marijuana remains illegal under federal law, regardless of state law.
During the NACUSO annual meeting, NCUA Vice Chairman Rick Metsger was asked during a Q&A about serving marijuana-related businesses. When it’s just one business among many a credit union might be serving, Metsger said there are no safety and soundness issues.
“Where that changes and where the real issue is, if you get a CU that is set up entirely as a marijuana CU,” Metsger said. “Now you have concentrated that risk. Then you have to look at the fact federal law is different from the state law. Can a federal insurer insure something that’s illegal? Can the federal agency obtain the collateral if there is any problem, when it’s illegal to have that collateral? At some point in time the federal level at the congressional and Department of Justice level will make a determination that makes this point clear.”
In 2014 organizers of Fourth Corner CU, located in downtown Denver, had hoped to open their doors by Jan. 1, 2015.
O’Gorman, reminded that marijuana businesses handling large amounts of cash due to not having ready access to the banking system is “one of the biggest public safety issues” facing Colorado today. “It's not safe for any of the business owners nor for the monetary system in and of itself,” O’Gorman told Colorado Public Radio.
Several members of Congress, including Rep. Ed Perlmutter, D-Colo., are again planning to pursue legislation to assure banks that provide services to marijuana businesses there would be no federal backlash for doing so, Colorado Public Radio reported. Perlmutter, who says safety is driving his actions, also recently helped orchestrate a conference between Federal Reserve of Kansas City president Esther George, government officials, marijuana business owners, and bankers.
The Fourth Corner CU was formed from the work of the Mason family—25-year-old Alex and his attorney father Mark. Alex’s mother, Rhoda, and his sister, Delaney, also played integral roles in getting the CU chartered.