A big regional lender, Zions Bancorporation, said on Tuesday that it was taking a charge of $387 million to rid itself of a sizable portfolio of trust-preferred collateralized debt obligations and other C.D.O.'s. The bank, based in Salt Lake City, said it was taking the fourth-quarter, noncash charge and putting the portfolio up for sale because it believed the securities would be considered "disallowed investments" under the Volcker Rule.

... the unexpected announcement by Zions, led by Harris H. Simmons, is an indication that the impact of the Volcker Rule will not just be felt at traditional Wall Street firms but at other kinds of banks as well. The move by the lender also reflects the kind of careful analysis other banks may be undertaking as they try to understand the provisions of the 71-page rule and its more than 800 pages of supplementary information.

Comments: Be the first to add a comment

add a comment | go to forum thread