Fed Rejects Colorado’s Attempt to Create Marijuana Bank

DENVER — Colorado’s attempt to create a bank to service its marijuana industry has suffered another setback by the federal government and could be facing an impossible dilemma.

The Federal Reserve — the guardian of the U.S. banking system — said in a court filing Wednesday that it doesn’t intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.

The stance appears to mark a shift in the position of the federal government. Last year, the U.S. Treasury Department issued rules for how banks can accept pot money.

“We’re frustrated,” said Andrew Freedman, director…

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