ZIONS BANCORPORATION (NASDAQ:ZION) Files An 8-K Regulation FD DisclosureItem 7.01
ZB, N.A. and PPS Data, LLC (“ZB” and “PPS”, respectively), two subsidiaries of Zions Bancorporation (“Zions”), entered into a settlement agreement, dated September 20, 2017, with the United States Attorney’s Office for the Eastern District of Pennsylvania (the “USAO”) relating to allegations by the USAO that ZB and PPS violated the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”) in connection with payment processing and banking services provided to ten telemarketing or webmarketing companies primarily during the 2006-2008 timeframe. This settlement relates to the same facts that were at issue in a class action lawsuit, Reynaldo Reyes v Zions First National Bank, et al, which ZB and PPS settled in 2016. Under the terms of the agreement, ZB and PPS will pay a civil money penalty of $3.6million. Because this amount has been fully accrued, the settlement will not affect Zions’ financial results for the third quarter. In the settlement agreement, ZB and PPS denied any violation of FIRREA or other wrongdoing by them or any of their affiliates.
About ZIONS BANCORPORATION (NASDAQ:ZION)
Zions Bancorporation is a financial holding company. The Company operates through seven segments: Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado and The Commerce Bank of Washington. It focuses on providing community banking services and its core business lines are small and medium-sized business and corporate banking; commercial and residential development, construction and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending; trust and wealth management; limited capital markets activities, including municipal finance advisory and underwriting, and investment activities. It also provides personal banking services, including home mortgages, bankcard, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit, safe deposit facilities, direct deposit, and Internet and mobile banking.
