The state of Colorado no longer outlaws recreational marijuana use, but the U.S. government still considers it a Schedule I controlled substance, so many businesses making money from the locally legal sale of cannabis are having trouble finding banks to handle their cash. One credit union formed with the goal of providing financial services to those in the marijuana industry received a charter from Colorado, but has filed suit against a regional Federal Reserve bank for blocking its ability to work with other banks. [More]
Washington, D.C., might as well be called Acronym City. It feels like there are a zillion different, discrete agencies, organizations, bureaus, boards, and commissions within the federal government, each with its own graceless three-, four-, or five-initial moniker, forming the tangled web of a bureaucracy that regulates… well, almost everything. So what are the key regulatory agencies, anyway? Who oversees what, and who do they report to, and how does it all work? [More]
The shutdown of the federal government is now a week old, meaning a growing number of furloughed workers — and employees of businesses whose income depends on government contracts — are having trouble keeping up with their bills. In a joint statement today, five regulators have asked banks and other financial institutions to be mindful of customers who are directly impacted by the current staring contest. [More]
Loans from federal credit unions are currently capped at 18%, though some qualifying short-term loans can go as high as 28% (plus a $20 fee). These numbers are far below the standard three-digit APRs you see on payday loans, but a small number of credit unions are still figuring out ways to hook customers up with these questionable, high-interest loans. [More]
For most companies, a $165 million settlement would be huge news. For Bank of America, it’s like a paper cut on a guy that’s been swimming in the piranha tank all day. Not that we feel any sympathy. [More]
More and more local banks are turning to the internet to entice deposits, offering high yields and favorable loans terms. But how do you know if a bank is legit? Ask the FDIC.