Zions Bancorp to resubmit capital plan

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

After a review of the Fed's stress test publication (in which it showed the details of its exam), the bank says results were worse than it had expected thanks to: 1) Significantly higher commercial real estate losses 2) Significantly greater risk-weighted assets, and 3) Lower pre-tax, pre-provision net revenue.

Zions again notes its original submission to the Fed occurred prior to its sale of certain CDOs in January and February, with said sales resulting in a substantial reduction in risk.

The bank expects its resubmission will result in it having equity capital sufficient to meet or exceed minimum ratios set by the Fed under its severely adverse scenario.

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