Zions Bancorp was the hottest bank stock on Wall Street Friday, a day after it presented a forceful case to investors and analysts that it has enough capital to repay $1.4 billion in bailout funds it received through the Troubled Asset Relief Program.
Shares of the Salt Lake City-based regional banking company rose as much as 4.9 percent before settling back to a 3.7 percent gain, closing at $19.86. The stock was up a similar 3.5 percent Thursday. So far this year, Zions' shares are up 22 percent in value.
At a meeting in Salt Lake City on Thursday, Zions laid out its case that after running several stress tests on its finances, the company believes it is healthy and would survive in good shape another fierce downturn such as the Great Recession. Zions indicated that it is ready to repay TARP if it passes a similar stress test ordered in January by the Federal Reserve. The Fed is expected to release those results in mid-March.