Washington – The Financial Stability Oversight Council (Council) today announced that it has made a proposed decision to grant the appeal of ZB, N.A. (Zions) under section 117 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Dodd-Frank Act provides for the Council to report to Congress on any proposed decision under section 117, and subsequently to make a final decision regarding the company’s appeal.
“The Council conducted a careful analysis of Zions’ business and found that there is not a significant risk that Zions could pose a threat to U.S. financial stability,” said Treasury Secretary Steven T. Mnuchin. “In appropriate cases, the Council’s use of this authority promotes regulatory efficiency and enables better service to customers and communities.”
If the Council makes a final decision to grant ZB’s appeal, ZB will not be treated as a designated nonbank financial company upon completion of ZB’s proposed merger with its parent bank holding company, Zions Bancorporation.
Section 117 of the Dodd-Frank Act applies to any entity (or successor entity) that:
- Was a bank holding company with total consolidated assets of at least $50 billion as of January 1, 2010; and
- Received financial assistance under or participated in the Capital Purchase Plan established under the Troubled Asset Relief Program.
If an entity subject to section 117 ceases to be a bank holding company, it will be treated as a nonbank financial company supervised by the Board of Governors of the Federal Reserve System. Section 117 provides that an entity may appeal its treatment as a designated nonbank financial company to the Council.
The Council is required by section 117 to make a final decision regarding Zions’ appeal within 60 days, subject to potential extension.
The Council unanimously approved the proposed decision.