Zions Bancorp. in Salt Lake City is planning to raise $525 million in fresh capital to satisfy regulators' concerns about its ability to withstand a severe economic downturn.

The Federal Reserve Board rejected Zions' capital plan earlier this year as part of the Comprehensive Capital Analysis Review, or CCAR. The Fed concluded that Zions' Tier 1 common capital ratio would fall below the 5% regulatory minimum under severely stressed economic conditions. An additional stress test mandated by the Dodd-Frank Act reached a similar conclusion.

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