Zions scales back necessary charges as regulators reverse course

|About: Zions Bancorporation (ZION)|By:, SA News Editor

Giving an update after regulators reversed themselves on how banks must account for TruPS and CDOs, Zions Bancorp (ZION) says it will no longer have to take a $629M charge.

Nevertheless, Zions will sell a portion of its CDO portfolio as part of an effort to manage risk. The combined impact of the Volcker Rule and the sale will result in a pre-tax charge of $135M-$145M in Q4. The bank expects to report a GAAP net loss of $0.31-$0.33 per share for the Q, but a material improvement in the unrealized loss portion of its CDO portfolio should allow TBV to increase.

Zions also plans to resubmit its 2014 capital plan to the Fed.

The stock shot 4.3% higher in the regular session today.