Did the US Government Inadvertently Just Fund the Cannabis Industry?
- Cannabis Now · Jun 9, 2023
Although federal regulations make providing banking services to the legal cannabis industry a regulatory burden, some banks have opted to offer financial products to regulated cannabis businesses. One such institution was Signature Bridge Bank, which was seized by federal regulators earlier this year after suffering a liquidity crunch tied in part to investments in the cryptocurrency market.
On March 12, 2023, the New York State Department of Financial Services took possession of Signature Bridge Bank to protect depositors and appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver. The FDIC, in turn, transferred all the deposits and nearly all the assets to Signature Bridge Bank, a full-service bank operated by the FDIC, while it looked for potential bidders for Signature Bridge Bank.
On March 19, the FDIC announced Flagstar Bank, a wholly-owned subsidiary of New York Community Bancorp,…
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Although federal regulations make providing banking services to the legal cannabis industry a regulatory burden, some banks have opted to offer financial products to regulated cannabis businesses. One such institution was Signature Bridge Bank, which was seized by federal regulators earlier this year after suffering a liquidity crunch tied in part to investments in the cryptocurrency market.
On March 12, 2023, the New York State Department of Financial Services took possession of Signature Bridge Bank to protect depositors and appointed the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver. The FDIC, in turn, transferred all the deposits and nearly all the assets to Signature Bridge Bank, a full-service bank operated by the FDIC, while it looked for potential bidders for Signature Bridge Bank.
On March 19, the FDIC announced Flagstar Bank, a wholly-owned subsidiary of New York Community Bancorp,…
