Junk in the Trunk
As I pointed out on 8 October and again on 14 January, Zions Bank is feeling the pain. It seems I'm not alone in that assessment. Moody's has downgraded Zions' senior debt to junk status. S&P cut the credit rating to the bottom of investment grade, but how long that will hold is a good question. Zions simply has too much garbage on its books, both self-acquired and forced on it by the FDIC. Zions has had to acquire several of the FDIC's regional problem children; Zions could well be the next problem child. Perhaps Utah needs to get used to not having an independent, local bank.