Denver-based, state-chartered Fourth Corner Credit Union has asked the Federal Reserve Bank of Kansas City for a master account to help social groups pushing for the legalization of marijuana. According to a report in CUInsight, the master account would enable the credit union (CU) to serve such social groups.
In a civil complaint filed at the end of September, Fourth Corner Credit Union argued the federal law “unambiguously creates a non-discretionary statutory obligation” requiring the Federal Reserve Bank of Kansas City to issue a master account to all depository institutions. The lawsuit also contends the Federal Reserve Bank of Kansas City has invoked an “illegal discriminatory procedure” by asking the CU for information that the government agency doesn’t obtain from any other depository institution seeking a master account.
Fourth Corner Credit Union has requested that a Denver federal judge order the Fed to issue the master account immediately, noted the CUInsights report.continue reading »