Quote Originally Posted by 68Charger View Post
The state treasury isn't FDIC insured, as it is not a private bank?

As I understand it, it's the FDIC insurance that private banks don't want to jeopardize by dealing with dopers and their money.
No. Post 9/11 the various money laundering laws were greatly strengthened. Banks can't knowingly accept accounts for illegal businesses. Criminal liability for the banks.