Washington – The Financial Stability Oversight Council (Council) today announced that it has made a final 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 Council had made a proposed decision to grant Zions’ appeal on July 18.
“Zions engages in limited capital markets activities, presents minimal fire sale risks, uses a simple operational structure, and is subject to extensive regulation and supervision. The Council determined that there is not a significant risk that Zions could pose a threat to U.S. financial stability, and I am pleased that the Council used its authority to promote regulatory efficiency,” said Treasury Secretary Steven T. Mnuchin.
As a result of the Council’s decision, 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 unanimously approved the final decision by a vote of nine to zero, with SEC Chairman Jay Clayton recused.