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Zions may apply for federal funds

Zions may apply for federal funds

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SALT LAKE CITY (AP) -- Zions Bancorp could seek between $500 million and $1.5 billion of funding the U.S. Treasury is offering to encourage banks to lend and relieve the credit-market crunch.

The application deadline for the federal Capital Purchase Program is Nov. 14. Zions Senior Vice President Clark Hinckley says the bank's board is expected to decide whether it will apply in the next few days.

The purchase program is part of the more than $700 billion bailout approved by Congress.

Under the purchase program, the Treasury Department will buy up to $250 billion of banks' senior preferred shares to make more money available for lending.

The banks would buy the stock back in five years.

Salt Lake City-based Zions has banks in 10 Western states.

Information from: Deseret News

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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