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What: Shares of Utah-based banker Zions Bancorporation
So what: In short, Zions will be getting the government off its balance sheet and will do it without diluting shareholders with new equity. In a press release yesterday, Zions said the Federal Reserve gave the bank a go-ahead on its plan to repay TARP and other government loans. It was widely expected that Zions would have to issue new stock to make the repayment, but the plan that it's moving forward with is only raising money through debt -- specifically, $600 million in new senior debt.
Now what: Not only is it good news for shareholders that Zions isn't issuing new stock, but the fact that it's been given the green light to repay the loans suggests that regulators believe the bank is on solid footing. For investors excited about dividends, though, it may be notable that included in Zions' plan is the pledge to keep its quarterly dividend at $0.01 at least through 2012.
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Fool contributor Matt Koppenheffer has nofinancial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.