Big Problem for Small Banks: Trust-Preferreds [WSJ]

From the WSJ

A popular financial instrument that helped fuel the lending boom at many small U.S. banks now is deepening their misery, increasing the possibility that some of the weakest banks could fail.

This issue is affecting mostly the small banks. Three banks mentioned in the article that are trying to buy back their trust-preferred securities include Sterling Financial, BankAtlantic Bancorp and HomeStreet.