Zions Cites Volcker Rule on $387 Million Charge Tied to CDOs
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Zions Bancorporation, Utah’s biggest lender, said the new Volcker Rule forces the company to get rid of some prohibited holdings at a cost of about $387 million.
The bank can no longer keep trust-preferred collateralized debt obligations issued by banks and insurers until they mature, the Salt Lake City-based firm said today in a statement. Other asset-backed CDOs are included in the non-cash charge, which Zions said may be bigger or smaller depending on how sales mandated by the Volcker Rule affect prices.