A large regional bank says it will post a big loss. It blames the ’s restriction on proprietary trading by banks. The bank regulators respond by saying that maybe the Volcker Rule does not apply.
The bank’s statement came on Monday; the regulatory response came late Thursday afternoon. The net result is that it is not clear whether the Zions Bancorporation will be able to continue to obscure losses that it has incurred but has yet to show on its income statement. Stay tuned.
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