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Zions will seek bailout money

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StephenN | 8:29 p.m. Oct. 22, 2008
The title in the article is misleading. The article states that Zions Bancorp is interested in the Bailout money and the board of directors has yet to vote on whether they will take the bailout money or not. The title of the article implies that they have already decided. I hope this was not done in an effort to get people to read it as this would be bad reporting.
Anonymous | 8:48 p.m. Oct. 22, 2008
This will silence most in Utah about socialism.
CougarKeith | 9:09 p.m. Oct. 22, 2008
Dear StephenN, Bad Reporting is the NEW STANDARD in America, it has been for a long time now, haven't you noticed???

Zions will take whatever Hand Out the Government wants to give, and why not, I sure would, the fact is that money, all of every "Bail Out Plan" should have been divied up to the AMERICAN TAX PAYER! This would have given families the ability to get out of debt, giving PLENTY OF MONEY TO THE BANKS, and Plenty of Money to be invested in stocks, bonds, new small business and savings! Also would have JUMP STARTED THE ECONOMY 110 fold!!! The problem is, we are the little guy who foots the bill, they don't care about us. I tried to tell Senator Hatch and others about this great idea, but nobody even replied, they just STOLE YOUR HARD EARNED MONEY and gave it to the guys who pay their campaign financing! This GOVERNMENT IS CROOKED and nearing it's END MY FRIENDS!!!
Comments continue below
Ernest T. Bass | 9:25 p.m. Oct. 22, 2008
Hmmmmm, who ultimately owns Zion's Bank?
Yep, hypocrits abound!
Socialism bad.....oh wait, not it's not.
CP | 9:37 p.m. Oct. 22, 2008
You're kidding right? Even Zions Bank is going to cash in on the bailout? I didn't know they were in trouble or do they just want some "free" money for a cushion? Lots of questions but after reading this article I still can't find the answers.
Tom Joad | 9:51 p.m. Oct. 22, 2008
Who's money are they taking?
RE: CougarKeith | 10:11 p.m. Oct. 22, 2008
I'm sure all those taxpayers who are in so much debt would wisely use any money given to them by the government. Obviously they don't know how to manage what they already have so why would more money help them any. You sound like a socialist.
Albert Montoya | 10:22 p.m. Oct. 22, 2008
A taxpayer bailout or whatever you want to call it is theft. Congress was strongarmed to pass it. It is theft. No good can come of it.
Gimme, Gimme | 10:24 p.m. Oct. 22, 2008
How do I get some of my hands on my fair share of this if Zions Bank lands this sweet deal? I'm a good Zions customer!
Capitalist | 10:31 p.m. Oct. 22, 2008
Ronald Reagan has got to be turning over in his grave. The amazing irony is that this is happening in the most conservative, Republican state in the United States of American. What the heck is going on? What happened to free market economics? Taking a handout from the Federal Government? I recall from history that Utah Territory spurned the Federal Government for many years during the late 1800s, seeking to maintain its fierce independence. This "States Rights" attitude and philosophy has prevailed for many years. Until Now. Again; what the heck is going on?
TomJ | 10:50 p.m. Oct. 22, 2008
Can't ZIONS see what's happening here? Or are they blinded by fear and/or greed? They are walking into a trap. Since when is it good for any government to purchase ownership of private institutions? When government does that it's the beginning of fascism. Something scary is going on here. If you recall the Federal Reserve created this problem in the first place with cheap and easy money. The banks took the bait, garbage loans were made, and they began to fail. The government now steps in to solve the problem by borrowing more money from whom? The Federal Reserve! Does this seem odd to you? If ZIONS goes for this bait it will be the end of another independent bank. Beware.
Goldilocks | 10:51 p.m. Oct. 22, 2008
80% of Americas Money is in 2% of Americans pockets. Hey we borrowed money on our homes to pay medical bills, send kids to college, replace furnaces etc. We paid it. Were all tapped now what? It's their turn. Bail out? no loan.... with an adjustable rate.
Spanky | 11:00 p.m. Oct. 22, 2008
This is why I bank with credit unions!
Anonymous | 11:14 p.m. Oct. 22, 2008
Any of yous have any idear 'bouts who I can talk to 'bout startin' me up a bank?
Zions War | 11:30 p.m. Oct. 22, 2008
Zions bank has been waging a war on America First Credit Union, now it seems Zions needs a bail out but America First is extremely healthy.

If Zions would have concentrated on runing its business according to sound principals and leave America First, the would be better off.
Rome burning... | 12:42 a.m. Oct. 23, 2008
So much for the end of capitalism and the free markets. It was good while it lasted.
Greed | 1:43 a.m. Oct. 23, 2008
Sure Zions is going to take any free money they can get their hands on, they are no more moral or honest than the rest of these criminals that have ripped off the American public.. What a joke, our government is utterly corrupt and have failed the people of this great country.
whose worse | 1:44 a.m. Oct. 23, 2008
Between bankers and lawyers I don't know who is worse.. oh I forgot their in this together.
CP | 3:55 a.m. Oct. 23, 2008
This is why I also use a credit union and I have educated my kids since they were small not to put their money in a bank but to go to a credit union. And they are so glad that they listened. Looks like it's the big and mighty Zions Bank with it's tail between it's legs after all.
liberal Larry | 6:05 a.m. Oct. 23, 2008
This reminds me of my college roommate. He used to get food stamps. He didn't really need them, but since he was eligible, he figured "what the heck".
Eugene | 6:29 a.m. Oct. 23, 2008
America will prevail and the banking system will perservere. Let's not allow our cynical media-induced minds devolve into a self-defeatist attitude. A small dose of patriotism will gain huge results.

Are many politicans in our government corrupt? Yes! Are many Wall Streeters and investment bankers corrupt? Yes! Are there honest politicans, Wall Streeters and investment bankers? Sure there are. We just need to find them!

As far as Zions goes, sounds like they are looking to accept some of the low cost capital in order to improve the credit availablity which will help the states they are in come out of this economic difficulty. It is also a competitive reason that if their major competition such as Wells Fargo has cheap capital to lend out, then Zions is smart to accept lower cost capital in order to compete.

While I don't like this "rescue plan" at all, I don't trust Obama and the new super-majority, and I believe that the markets and banks would have come out of this fiasco on their own (with maybe a weeding out of a few more weak banks), Zions is probably making the right decision based on what is going on.
wayne | 6:53 a.m. Oct. 23, 2008
just like stocks the time to buy is comming. I guess the "temporary" nature of the government intervention is that it is to give solvent banks money to buy out unsolvent banks. result? stronger banks and banking industry.

the problem is when obama take his socialist agenda to washington he will have more than half the the bailout money to spend. one of the first things that will happen is the word temporary will be removed. giving him one less industry he has to put under his socialist government control. with democrates in control of congress they will quickly give him whatever he wants.

so we are we still wanting the change that obama has been talking about and promised to bring to washington?

wake up america the alarm clock has been going off for some time. wake up.
Re: Ernest T. Bass | 7:25 a.m. Oct. 23, 2008
It's so interesting that ignorant people like "Ernest T. Bass" think that Zions is owned by the LDS church. It is a publicly traded company where the church sold most of it's stock in the 1960's. The name "Zions Bank" was simply retained. The Board and stockholders are private citizens and make their own decisions for their bank. Welcome to reality. His comment makes absolutley no sense.
David Young | 7:32 a.m. Oct. 23, 2008
This is all "yesterday's" news. Last week the company said the following in their earnings call: "First what I�d like to do is talk about the TARP US Treasury Senior Preferred Capital Program. Just note that subject to discussion with and approval by our Board we do expect to apply under this program. The approximate range of amounts for which Zions would be eligible are at the low end about $500 million and at the high end about $1.5 billion.

Our current expectation would be to apply for more then the minimum but probably not the maximum but we�ve not decided how much. We�ll be discussing that over the next week or two among ourselves and with the Board and we know of no reason why we would not receive approval if we do apply." (Doyle Arnold, CFO)
WOW | 7:36 a.m. Oct. 23, 2008
Can I take some money too to pay my bills? NOPE,I need to pay for them.

Zions Bank, Wells Fargo, Chase and all of them love to take our money!!! FREE MONEY FROM US AND FROM THE GOBERMENT!!!

CREDIT UNIONS!!! BY THE PEOPLE, FOR THE PEOPLE (and is not socialism, you fools!)
Dear Zion | 7:39 a.m. Oct. 23, 2008
They are going to take the money. I think we should make all the bank owners go on a T.V. show like "deal or no deal" and "win" the money. They could sell advertising and everything.
Himself | 7:44 a.m. Oct. 23, 2008
Sarah will save us.
Nothing left to socialize | 8:11 a.m. Oct. 23, 2008
Bush has centralized and socialized.
Sad Truth | 8:38 a.m. Oct. 23, 2008
Zions is only going to lose. Accepting government welfare to even the playing field is still accepting government welfare.

When the "pure" capitalistic enterprises become government owned, it's only a matter of time before the board of directors becomes governmentally nominated.

Once you join and start sliding the slippery slope, you only go faster. Time will tell. It's only a matter of time before we realize how far into socialism we've gone.
Ned | 8:41 a.m. Oct. 23, 2008
After all the years of whining about credit unions and "government subsidies", Harris and crew are now going to dive in to one of the ugliest government subsidies of all, and do so with no remorse. Sickening.......
FreeMoney | 8:47 a.m. Oct. 23, 2008
I don't understand the reference to "free money" in many of the posts. I don't believe government should be buying into private companies, even if they tell us it is temporary. That is what this portion of the bail out is according to the article-- A temporary purchase of stock that will be repaid in five years, not free money.

I question what will happen if we are now at the start of a great depression and those banks can't pay back the stocks in five years? How much further will the government and Federal Reserve go to "Fix the economy" by taking it over?

The government and Federal Reserve have done a bang up job over the past decade. I don't see those in Washington changing. I believe we need "new blood" and new ideas in Washington, like letting the Constitution be the guideline for policies and programs. Both Democrats and Republicans are not representing the people so I no longer vote for them. I do vote, but rarely when they have a "D" or "R" by their name.
Go Zions! | 8:50 a.m. Oct. 23, 2008
The purpose of the bail out is to have banks distribute money to stimulate the economy. Is it not a good thing local banks are looking to get some of the bail out money for the Utah economy? We as Americans must pay into the bailout, should we not reap some of the intended benefits as well?
Who's at fault? | 8:57 a.m. Oct. 23, 2008
The bank's bad-loan portfolio stood at $924.4 million at the end of the quarter, up 33 percent from three months earlier and 370 percent higher than a year earlier, when nonperforming loans totaled $196.6 million.

Loans and leases written off in the third quarter amounted to $95.3 million. Three months earlier, Zions wrote off $67.8 million.

Expecting more real estate woes, Zions set aside $156.6 million to cover future bad loans. That was up from $114.2 million three months ago and $55.4 million a year ago.

Hmmm..... Looks like Zions is right in there with all the other bankers in their greed in lending to people they shouldn't have been lending to. Of course, we all know who keeps them in business.....
The Dude | 9:07 a.m. Oct. 23, 2008
Paranoid people predicting the Apocalypse. Get half a brain, you nit-wits!!! Not everything is a slippery slope, and not all bad news is a permanent situation. The amount of negativity in Utah and in all of America these days is astounding. What happened to the optimistic America I grew up in?

YES, our economy will recover (give it a year or so), and NO, our nation will not become a new socialist mecca. Obama will serve two terms (maybe he'll even balance the budget like Clinton did!), and then people will elect some centrist Republican. Meanwhile, life will go on while we all earn money, raise our families, and send our kids off to college.

All is not bad in Zion.
Responsibility | 9:13 a.m. Oct. 23, 2008
I sure wish someone would bail me out whenever I make a bad deal or decision. Being responsible really stinks.
Now listen... | 9:15 a.m. Oct. 23, 2008
Folks, this is not "free money" and its not a "bail out" of any bank. True, it may be termed a "bail out" of the economy at large, but that means that all of us are getting bailed out.

A big mistake made in the Great Depression is that the government decided to hoard money rather than keep the market liquid. That is one reason that it was as bad as it was.

The Government is buying preferred (non-voting) stock in various strong banks. It is not free money. Now the taxpayers own a stake in these institutions and the banks will buy back the stock in a few years. In the mean time, the stock sale creates capital which the banks can lend so that companies can meet payrolls, factories can order raw materials and so that credit worthy people can buy homes at killer deals. Otherwise, everything grinds to a halt and then your job is in jeopardy and your 401-K tanks for the long-term.

This is one of the best ideas (and better than the original idea of buying the toxic assets) I have ever seen. I wish someone had thought of it 60 years ago!
Bail out money | 9:31 a.m. Oct. 23, 2008
The bail out is not free money. It is an investment and in most cases the government will actually make money with these investements. The only cases they will lose money is if a firm goes under and that is what they are trying to stop.
kathyn | 9:32 a.m. Oct. 23, 2008
I'm going to assume that Zions Bank has the best of motivations....to help their customers obtain much-needed loans. Then it would make sense. But I still have reservations about taking the money. I suppose if they didn't, it would go somewhere else and wouldn't benefit Utah at all.

The Bailout just shouldn't have happened...period!
We live in a generation of no consequences.
Thanks The Dude | 9:32 a.m. Oct. 23, 2008
You brought some perspective to the discussion.
Duh to the Dude | 10:12 a.m. Oct. 23, 2008
Yea woe unto him that sayeth all is well in Zion, yea Zion prospereth!

All is not well in Zion nor in any part of the world right now. This is the begining of the great sorrows we have ahead of us. Get prepared now or be greatly saddened later.
Captain Accuracy | 11:28 a.m. Oct. 23, 2008
Wait a minute. The headline says "ZIONS WILL SEEK BAILOUT MONEY". Then the story says "Zion's board is expected to determine whether to apply" after a quote "a program we would have interest in" and before "The minimum zmount Zions would be eligible for is $500 million".

Headline writer dude really let the reporter down with this one. In the end, it's the same story from earlier in the week, nothing has changed!
Cougar Blue | 11:48 a.m. Oct. 23, 2008
Another hog feeding at the trough because of their mismanagement of their banks. Is this socialistic Zion? Oh, that's right. It's only socialism when the benefits go to the common man. But to big corporations, it's just business as usual. Shame on Zion's for getting in that position. I've removed what I had there.
Switcharoo? | 11:58 a.m. Oct. 23, 2008
I was just thinking about switching my accounts from WaMU to Zions because I wanted to support a local bank that I assumed didn't need or wouldn't accept bailout money. Well, if Zions does accept the money I just might stick with WaMu (Chase).
Zions Banker | 12:02 p.m. Oct. 23, 2008
It is very interesting reading all of these insane comments on this board. Zions Bancorporation is asking for the money to help out sister banks in California, Nevada, and Arizona...NOT ZIONS BANK IN UTAH AND IDAHO! If Zions Bank was on its own, it would be on the healthiest banks in America. Because Zions Bancorporation merged with several other banks, BEFORE THIS REAL ESTATE MELTDOWN, they had to take on all of the real estate debt from those banks as well.
If you would do research before commenting, you would find that Zions Bank in Utah and Idaho doesn't do first mortgage lending. They sell all of there first mortgage loans to USBank. PEOPLE NEED TO REALIZE THAT ZIONS BANCORP IS MORE THAN JUST ZIONS BANK!!!
Er in AF | 2:44 p.m. Oct. 23, 2008
Please read the article before writing. Many read the Headline (misleading) and don't read that Zions is not in trouble, but is looking at low cost money and will probably not walk passed it. I they do decide to pick it up then credit will be available in Utah (& Idaho and other places that ZB does business) and all will benifit. When credit tightens and peolpe/businesses cannot get access to money then things happen like it did in Iceland last week. 75% drop in stock and a freezeing of the economy. Credit (not irresponsible credit) is important to any/most business and all economies.
Lynn | 2:55 p.m. Oct. 23, 2008
Good grief.
It looks like only about 6 of you actually read the whole article.
The government isn't going to give anybody this money.
Zion's has certain kinds of stock to sell.
The government has a program to buy them. It gets value for its money. These stocks can be resold and at a profit.
By doing this, Zions bank will then have more money to lend at a good rate to people who are qualified to buy homes or fix them up, among other things. This will employ people who are not working now, people in the construction industy and those who supply them. More people working is a good thing, folks.
It isn't welfare.
This will help many citizens, including business owners and the average person.
People need to be working, money needs to circulate.
You need to pull your heads out of your prejudices and think about what's really going on.
Zions Bank isn't getting bailed out by some gift of free money from the tax payer. They are selling a product and using the capital from that sale to make more loans and get money moving again.
Don't let your prejudices cloud your thinking.
The irony of it all... | 3:15 p.m. Oct. 23, 2008
is that credit got us into this mess and the government making credit easier to get is what will supposedly get us out. Scary, isn't it?
Zions Bank may collapse | 3:29 p.m. Oct. 23, 2008
CP,

"You're kidding right? Even Zions Bank is going to cash in on the bailout? I didn't know they were in trouble or do they just want some "free" money for a cushion? Lots of questions but after reading this article I still can't find the answers."

I've known for months that Zion's Bank was on the list of banks that are likely to fail. Zion's Bank has been in trouble for quite some time and it is shocking that you didn't know that. Most lists of banks that are in trouble include Zion's Bank.

By the way I think it fair to mention that Clark Hinckley is the son of President Hinckley who until recently was President of the LDS Church.
RE: Zions Bank may collapse | 3:44 p.m. Oct. 23, 2008
"Zions Bank" would never collapse because it doesn't hold 1st mortgage notes on residential real estate. Zions Bank has always been a very consertative lender, even in the residential boom that got us into this mess. If there is any place right now that I'd rather have my money, it would be right in Zions Bank. It has never been a lender that would lend more than 80% of the value of ones' home on 2nd mortgages, while other banks (USBANK, Wells Fargo, etc.) were lending at 125%. The umbrella of Zions Bank (Zions Bancorporation) may collapse, but that would be after Zions Bank has removed itself from underneath that umbrella.
Zions Bancorporation | 3:54 p.m. Oct. 23, 2008
I know that it's been said before, but it think it's important to understand that Zions Bancorporation and Zions Bank and two different entities. This article is about Zions Bancorp, NOT ZIONS BANK! As it said in the article, Zions Bancorp is the head of 10 western US banks. If Zions Bancorporation was as bad as people are protraying it to be in these comments, why did the FDIC award them the rights to the deposits of Silver State Bank in Nevada? I would think that the government would want to give insured funds to a strong bank, not a failing one!

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