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Banks Have 90 Days To Buy Back Securities

16 Aug 2010

Banks have a 90-day window during which to buy back $118 billion in so-called “trust preferred securities,” under the recently passed Dodd-Frank reform act.

Banks have a 90-day window during which to buy back $118 billion in so-called “trust preferred securities,” under the recently passed Dodd-Frank reform act. Financial institutions reportedly have expressed interest in the buybacks because they offer higher interest rates to attract investors. However, the bill bars firms from counting these securities as tier 1 capital beginning in 2013.

Click here to read the story from The Financial Times.

16 Aug 2010