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Exclusive: Credit Suisse stops custodian service for some U.S. cannabis stocks - sources

Credit Suisse details Swiss watchdog action after Archegos blow up
Credit Suisse details Swiss watchdog action after Archegos blow up   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html
By Reuters

By Shariq Khan and Matt Scuffham

(Reuters) – Credit Suisse Group AG has told customers in recent months it will no longer execute transactions in shares of cannabis companies with U.S. operations or hold them on behalf of clients, industry sources told Reuters on Wednesday.

The Swiss lender is among a handful of banks that had been willing to buy and sell marijuana-related stocks for clients in the United States and hold those shares as a custodian.

Many banks have been reluctant to provide services to marijuana companies as the drug remains illegal under U.S. federal law, even though many states have legalized its use.

Credit Suisse declined to comment.

(Reporting by Shariq Khan and Matt Scuffham; Writing by Patrick Graham; Editing by Howard Goller)