Speculation on Possible Taxation of Tier 1 Eligible Trust Preferreds

BMO Capital Markets, 6 November 2006There is some concern among treasurers of banks and insurers that the new income trust tax policy will result in their �trust preferreds� being taxable. In a worst-case scenario, these companies would lose access to a very cost-effective form of capital. y way of background, trust preferreds make up about 10% of Tier 1 of banks and insurers. These structures,