Lehman Brothers Financial SA (LEHNQ)

[DJN]

As of Jan. 1, 2013, banks will no longer be allowed to count trust preferred shares as Tier 1 capital. As a result, banks not only may stop issuing preferred shares, but many might call in outstanding shares that no longer help them meet capitalization requirements. In addition, some banks claim that the new rule triggers a provision allowing them to call preferred shares even sooner than five years after their date of issue. That would allow them to call preferred shares issued at much higher interest rates during the financial crisis of 2008-09, when banks were in desperate need of capital, and issue new ones at today's lower rates. Doing so would deprive investors holding those shares of additional years of guaranteed income they thought they'd locked in, not to mention any price appreciation on the shares, which issuers could buy back at par value.

http://finance.yahoo.com/news/preferred-stock-may-not-best-110000812.html

Note: We are not a bank, so does this impact us?