there's no question anymore that all 3 series wont be called early but i see no indication that it may happen sooner thn 2013 though the risk certainly exists..here's a story from bbt
"BB&T plans to buy back all of its $3.2 billion in trust- preferred stock because TruPs can’t be counted as capital under the New Dodd-Frank Act regulations starting in 2013"
I'm not sure the cash position of fitb but if bbt doesn't have the tier 1 capital in place to replace these preferred if they are called then they may want to keep thim until 1/13
just a guess
I did check the "call date" and it is 5/15/2013 for FTB-C.
I would like to know more about HOW they can "Call" a preferred before the call date.
So this does make be worry about the BBT-B issue (Also the BBT-A, BBT-C and others)
Anybody have any additional info on this?
Thanks for the heads up!
“Capital treatment event” means our reasonable determination that, as a result of any amendment to, or change in, including any announced proposed change in, the laws or regulations of the United States or any political subdivision thereof or therein, or as a result of any official or administrative pronouncement or action or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which proposed change, pronouncement, action or decision is announced on or after the date hereof, there is more than an insubstantial risk that we will not be entitled to treat an amount equal to the liquidation amount of the capital securities as Tier I capital, or the equivalent thereof, for purposes of the capital adequacy guidelines of the Federal Reserve, as currently in effect and applicable to us.
I called BBT IR about the BBT-PB Perferred Security and they directed me to an agency which handles the security for them. I called them and they told me the securuty would be called in 2013 but that they didn't know the exact time. Do your own due diligence here is the number 804-780-3283.
Trust Preferreds used to be counted as Tier 1 capital, even though it's actually debt.
Well not anymore with the new banks regulations.
In IPO prospectus, It says that in case of such regulatory change, the bank has the right to redeem the preferred, even before the call date.
So yes you're at risk with your BBTs.
Wrong. It can be called anytime due to a clause in the prospectus saying that if the Govt. changes the rules of the Tier 1 paper, they are free to redeem it. The rules were changed. It will be swapped for another preferred, not for $25 cash.
selling in heavy volume today, believe what you want...
there is no difference between bbt-b and ftb-c
ftb-c was NOT callable according to your website either.
you need to look a little deeper.
Thanks for the heads-up. I only had 2000 but I sold out quickly and the damage was slight. If you like these kinds of things, take a look at WFCL (my major holding by far). It's non-callable, yields almost 7%, and very well-secured, and is not of the same type as BBT.B.