Primary File

Fourth Corner Credit Union: A Marijuana-related Business Struggles to Open Its Door

Dale Varble, Joyce A. Young
December 31, 2018
North America
Accounting & Finance
3 pages
governmental regulations, financial services, credit unions, marijunana, marijuana industry, Emerging Industries
Student Price: 
$4.00 (€3.7)
Average rating: 

This critical incident describes a federal regulatory battle faced by Fourth Corner Credit Union. Located in Denver, Colorado, Fourth Corner wanted to be the first Colorado credit union created to serve the growing recreational marijuana industry. Although marijuana remained an illegal drug at the federal government level, Colorado had approved marijuana for recreational use within the state. Fourth Corner Credit Union successfully applied for and received a state credit union charter (i.e., permission) from Colorado in 2013, but was unsuccessful in securing a Master Account from the U.S. Federal Reserve. Without a Master Account, the credit union could not obtain insurance from the National Credit Union Association, leaving its prospective depositors unprotected from financial losses and unable to transfer funds or complete settlements. Thus, the doors to Fourth Corner remained closed. Given the setback, students are asked to decide which course of action Deirdra O’Gorman, the credit union’s CEO, should recommend at next week’s board meeting.

Learning Outcomes: 
  • Analyze a situation as it relates to the social responsibility of marketing
  • Demonstrate an understanding of external environmental factors
  • Prepare a SWOT analysis (strengths, weaknesses, opportunities, threats) relating to opening a business
  • Select a strategic marketing option and justify the selection