The term "buying opportunity" is just putting lipstick on a pig. Not that I think the preferreds are pigs, they're going through an ugly phase. Why doesn't management issue a press release if the situation is not so bad?
I was just talking to someone about this and their answer was "because the government probably told them not to say anything" leading me to believe there is a real risk of dividend suspension.
Look, I hold over 5000 shares and it is most of my net worth on paper - lost 35% of it in the past 2 weeks due to the Fitch downgrade and the subsequent sell offs. RBS' initial response was to declare to Q3 dividend, and then there was a second sell off this week that has started to accelerate. If RBS had confidence in their ability to pay they would make an announcement, the only thing that would stop them from doing so is the EU.
The risk is real and I think it is greater than many have speculated.