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URL:  http://boards.fool.com/joel-many-thanks-for-your-detailed-explanation-of-28511368.aspx

Subject:  Re: HFC-B Date:  5/14/2010  11:01 AM
Author:  brucedoe Number:  30857 of 35400

Joel

Many thanks for your detailed explanation of bank preferreds. Since C is no longer paying a dividend on their common stock (I believe), I guess they could defer payment on Capital Trust Preferreds if they want to. If they have Direct Corporate Preferreds, they can suspend paying the dividends and you will never get anything. BAC is still paying a penny a quarter on their common stock, the last I looked, so they MUST continue to pay the dividends on their Capital Trust Preferreds. Have I got this right?

Still, the ability to defer the dividends on Capital Trust Preferreds for 20 quarters is 5 yrs. I'm 79 and I couldn't stand loss of dividends for 5 yrs, though the company would also not pay dividends on their common stock for that long also.

I'm sure I have irrational fears, but, just the same, I think I won't get involved. You obviously know lots about this so I'm sure you will do well in investing in bank preferreds.

brucedoe
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