Report: CA-backed bank for marijuana businesses would face insurmountable hurdles

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California would likely lose money and face overwhelming federal barriers if it tried to create a state-backed bank to help cannabis businesses navigate banking challenges, according to a report released by the state treasurer.

The report puts an end for now to hopes the state could find a banking solution for marijuana businesses.

Since marijuana remains a Schedule 1 drug under federal law, many banks are nervous about running afoul of the U.S. government by doing business with the industry,

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