During a Senate Hearing on Wednesday, Sen. Raphael Warnock questioned the heads of major banks about their commitments towards marijuana banking reform and promoting social equity. Warnock is willing to support the removal of barriers to cannabis banking. However, he does not want to let the focus on commerce overshadow the need for justice following decades of criminal prohibition.
Warnock said, “I am open to SAFER Banking, and more regulatory clarity about cannabis.” He told the heads of Wells Fargo and Bank of America as well as JPMorgan Chase and Citigroup, “but I fear that your banks and other influential voices will not be present when the time comes to address the wider harms of war on drugs.”
Warnock spoke about the Secure and Fair Enforcement Regulation Banking Act (SAFER), a federal bill that is awaiting debate in the Senate. If it passes, the bill would eliminate legal liability for those banks who work with cannabis businesses that are state-legal but still illegal federally. It will also create compliance hurdles for banks. However, the measure will not change the legal status for cannabis.
Warnock voted against the SAFER Banking Act in September. He said that the measure, while it would help banks and cannabis businesses benefit, “didn’t do anything” for communities the most affected by the drug war.
Since the beginning of the drug war over 50 years ago, who are we making safe? Communities in America have been decimated. “They’ve been hollowed-out,” Warnock said at the hearing on Wednesday. “The war against drugs has been a battle on communities of colour.”
“I support SAFER Banking,” he reiterated. “I am concerned about equity.”
The War on Drugs and mass incarceration have hollowed out communities across America. Yet, not enough has been done to mitigate the effects of these policies.
At yesterday’s Banking hearing, I asked Wall Street CEOs if they’ll commit to supporting standards to create equity: pic.twitter.com/Y17Bdrsbg8
Senator Reverend Raphael Warnock December 7, 2020
The bankers who attended Wednesday’s Hearing by the Senate Committee on Banking, Housing and Urban Affairs remained largely non-committal to Warnock’s promptings regarding the SAFER Banking Act and other social equity issues.
When Warnock requested that the bankers raise their hands to show support for the SAFER Banking Act none of them raised their hands.
After an awkward moment of silence, Bank of America’s Brian Thomas Moynihan spoke up to say “we all support” the bill’s intent, but “the problem is that it doesn’t solve the problem.”
When Warnock asked the bankers if they believed the reform would “reduce the racial gap in wealth,” no one raised their hands.
Warnock referred to the response as “interesting” and noted that the American Bankers Association – of which all banks present are members – has stated the bill will facilitate broader access and clarity in legal and regulatory matters.
The senator asked, “My question is legal and regulatory clarity – for whom?”
Warnock asked the bankers individually, in an effort to record their support for increased equity as legislators move forward with banking reform.
Jamie Dimon, CEO of JPMorgan Chase said, “We support the intention, but I would need to see the exact words in the law.”
Would you support efforts that are intentional in supporting equity and addressing terrible impact of 40 years on the war on drugs which has been in many ways a war against Black and Brown people?
Dimon replied, “Yes, but before I agree, I would like to see all the details, right down to the very last word.”
Warnock was not alone in his disclaimer. Other bankers also expressed similar concerns, saying they supported the concept of banking reform but wanted to be certain about its details.
The details are important, said Citigroup CEO Jane Fraser. We’d review it and work together with your office, if there were any concerns.
Warnock thanked bankers, but reiterated his concern that focusing solely on the reform of financial services for marijuana business could leave behind vulnerable communities.
Warnock said to the witnesses that “history does not suggest that we will go back and take these marginalized communities” if we continue making banking safer for powerful bankers.
The SAFER Banking Act has shown that details matter. While Warnock expressed his desire to see further equity protections in the SAFER Banking Act, Senate Majority leader Chuck Schumer (DNY) said that the legislation being brought to the Senate Floor is a matter to secure more Republican votes.
Schumer stated that the task was made even more difficult because some legislators are afraid their constituents “particularly older ones” won’t support reform despite the overall majority of voters.
The majority leader, despite the broad support of voters, said that the Cannabis Banking legislation passed by the Senate Banking Committee was still being held on the floor while senators try to build a stronger bipartisan coalition.
“It’s bipartisan. The House has backed it. Schumer stated last month that the bill could become law in the near future, but did not give a timeline.
This perspective is different from the one of Sen. Steve Daines, the main GOP sponsor of SAFER Banking Act (R-MT), whose position was that there were already enough Republican senators in the Senate who would be willing to move the bill forward.
Daines suggested that the key question is if the measure has the support needed to pass in the House. He stated last month that the Senate is working with its House counterparts to “get alignment between both chambers.”
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The article Senator presses top bankers on their commitment to social equity in Marijuana Banking Reform first appeared on Marijuana Moment.
