Recent moves in the U.S. Congress and courts could defang the country’s overarching financial regulatory council when it comes to policing “shadow banking,” the most powerful Democrat on the Senate Banking Committee said on Monday.
“Shadow banking” usually refers to nonbanking firms carrying out services similar to those typically offered by banks. Brown wrote that “a major cause of the global financial crisis of 2008 was the failure, or near-failure, of nonbank financial institutions.”
How prevalent is “shadow banking” in the marijuana industry? Recently FOX31 Problem Solvers polled 78 state-licensed dispensaries and found 27 willing to accept Visa or MasterCard as payment.
Since marijuana businesses are not permitted access to traditional bank accounts other nonbanking firms have stepped in to fill the demand.
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