Under the Dodd-Frank act, banks are getting a 90-day window to repurchase $118 billion worth of expensive securities, enabling lenders to replace the financial instruments with less-expensive capital. Wall Street insiders said financial institutions are looking into redeeming trust-preferred securities by capitalizing on the law. TruPS soon will not count as Tier 1 capital under the act, giving banks another incentive to redeem the securities.

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