FK Partner Samantha Gleit Comments on Cannabis Rescheduling and Banking Challenges
In a Reuters article, industry experts cautioned that while cannabis rescheduling marks an important step forward, it is unlikely to dramatically change banking practices in the near term. Samatha Gleit, a partner at Feuerstein Kulick leading the firm's debt finance and corporate restructuring practice, commented: “Rescheduling is great progress, but I do not expect it to open the lending floodgates for cannabis operators, or for it to be materially behavior-altering for larger banks.” Gleit warned that despite progress, significant barriers persist for banks serving the cannabis industry. “Until there is full federal legalization, lending and providing treasury services to cannabis companies will continue to be a banking hurdle, particularly for the larger institutions that need to maintain their FDIC insured status.”
