Bank of New York Mellon (BK) is the latest bank to announce plans to redeem its outstanding trust-preferred securities.
The New York company will repurchase its 6.875% and 5.95% trust-preferred securities with a combined aggregate value of $550 million on Nov. 26, BNY Mellon said Friday.
Banks have started to redeem trust-preferred securities in preparation for stricter capital standards that will begin being phased in 2013. Banks with at least $15 billion of assets as of Dec. 31, 2009, will no longer be able to count trust-preferred securities as part of Tier 1 capital under a provision of the Dodd-Frank Act.
Other banks that said they would repay their trust-preferred securities include Huntington Bancshares (HBAN), Fifth Third Bancorp (FITB), BB&T (BBT) and Bank of America (BAC).