When L.A. City Council President Herb Wesson pitched the idea of a Bank of Los Angeles last week, he singled out the city’s growing pot industry as one that could really benefit.
“Do you know we got people that are going to go home tonight that got a million dollars in cash buried in the backyard, and a million buried in the walls?" asked Wesson.
“We have to make this industry work.”
Even though pot is now legal in California, it’s still illegal under federal law. And since banks are federally regulated, they have to abstain from the marijuana business. So legal marijuana growers and retailers operate in a largely cash-based economy.
“They’re basically forcing these business to commit money-laundering,” said Susan Soares, executive director of the marijuana advocacy group C.A.R.E.