Saturday, April 25, 2009

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.

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2 Comments:

At May 12, 2009 at 2:04 PM, Blogger workhard said...

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At May 21, 2009 at 8:24 AM, Blogger Knute Rife said...

Don't run away.

 

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