Why Banks Aren't High on the Business of Legal Marijuana

Before you go, we thought you'd like these...
Before you go close icon

As of Jan. 1, marijuana could be legally purchased and possessed in the state of Colorado. This change in law, however, has failed to win over at least one group of businesses.

Because the substance remains illegal under federal law, banks such as Bank of America and Wells Fargo are refusing to provide them with financial products (loans, checking accounts, etc.) for fear of running afoul of federal money laundering rules. In the following video, Fool contributor John Maxfield, the author of a recent in-depth series on the industry, discusses what this means for the business going forward.

Do you hate your bank?
If you're like most Americans, you don't like your bank. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking and is poised to kill the traditional bricks-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under Wall Street's radar. For the name and details on this company, click here to access our new special free report.

The article Why Banks Aren't High on the Business of Legal Marijuana originally appeared on Fool.com.

Erin Miller has no position in any stocks mentioned. John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading