"Looks like they can take out ~5B of the fixed rate trups and fixed rate debt to 2013 pretty easy for a saving of ~280MM/year or 70M/Q.
They have already announced they're take out $3.3 billion in trups in 2013. I think they pay interest of around $75 million per quarte just on the trups. Got a lot of long term debt - $23 billion and need to take it out when the opportunity is right. Until then, I would be putting some of the proceeds from their gse mbs stuff into say usb/pnc long term debt at the right time.
Banks need to start thinking outside the box and trash conventional thinking about gov't bonds. Absolutely no reason to hold mbs gse stuff paying 86 bsp on 5 year maturities. Interest rate risk is huge.