wheelbarrowme,
I think it may be too late to reverse Frank-Dodd, even if I think this part of the bill makes little sense. Capital Trusts have always been backed by junior subordinate bonds. If a Bank Holding company gets taken over, the odds of a junior subordinate bond holder getting any of his investment back is probably down in the single digit percentile range - in other words, vanishingly small.
As for investments, some of us at work have been talking about investing in commodities like grains or the servicing companies or suppliers for farmers and the like. We kind of figure that might be the best bet for now; but some of those very companies have already had a good run-up this year.
- Joel