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Increasing Capital With Trust Preferred Securities |
May 13, 2004
Bank holding companies continue to utilize the trust preferred securities model approved by the Federal Reserve Board in October of 1996 to increase the company's capital. The popular security results in an interest expense deduction (like debt) and yet is considered as capital for regulatory and accounting purposes.
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The views expressed in this article are solely the views of the author and not Martindale-Hubbell. This article is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. |
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