You wrote, "Wrong. The IPO price was $25 a unit, but BAC can call at any price, even $21 bucks. All trust preferreds will be phased out over several years since they will no longer be counted as Tier 1 capitalization, unless a small bank, which BAC is not. The price here approaches $25 in anticipation of recall at $25. Enjoy the $1.88 a year interest meanwhile."
Just to clarify, the par value is $25/share and while they can call the issue regardless of the current price, the price they must pay is $25/share plus any accrued, but unpaid interest. (See prospectus for details.)
Problems occur on callable issues if you purchase them while they are above par and they are called. In that case, you risk suffering a quick capital loss on your purchase so you need to be sure to purchase the issue not far above its par value plus any accrued interest.
And right now all Capital Trust preferreds are effectively callable because of Frank-Dodd, regardless of the call date listed on sites like QuantumOnline.com. Frank-Dodd created a series of "Regulatory Events" as defined in the various Capital Trust prospectus, which serve as an exception to the stated call date.
You are correct on all accounts. However, the issuer of any trust preferred selling for less than $25, like BAC-PU @ about $23, can offer below $25 if holders voluntarily accept less than $25, particularly under a threat of the issuer suspending interest for 20 quarters allowed in the prospectus and required by government regs for trust preferreds.