With the Republicans taking control of the house, trust preferreds may continue to be counted towards bank capital. Further, debt is supposed to be most secure and we see how secure GM's debt was: GM bond holders were wiped out, so debt is no good either...lol. And U.S. Treasuries are no good when the Fed floods the market with $600 billion in funny money. I guess that leaves just gold, but that can collaspe too as in 1980's. Invest in good scotch whiskey.
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.