A young credit union’s plan to serve Colorado’s marijuana industry is getting snuffed out by the Federal Reserve Bank of Kansas City, and Fourth Corner Credit Union has now filed suit.
According to the Kansas City Business Journal, the K.C. Fed denied the state-chartered credit union a nine-digit routing number to create its master account. Federal officials say the related risks are unknown and, therefore, difficult to manage.
In the lawsuit, Fourth Corner’s CEO claims once its state charter was received, the credit union should be granted access to the Federal Reserve payment systems.
Fourth Corner formed last year in Colorado. According to the business journal, the suit further says the K.C. Fed doesn’t have such jurisdiction over the credit union; that regulatory role belongs to the Colorado Division of Financial Services.
Read more from
the Kansas City Business Journal.