[20140110]IF00007_信托优先证券（TruPS）.pdf

www.crs.gov | 7-5700 January 10, 2014 Trust Preferred Securities (TruPS) Overview Regulatory implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA, P.L. 111-203) has brought trust preferred securities (TruPS) to congressional attention. The Volcker Rule (section 619 of the DFA), as issued in December 2013, may force banks to divest certain TruPS that they already participate in. Banks have asked Congress to address the treatment of TruPS under the Dodd-Frank Act, and have challenged agency rulemaking in court. This note describes TruPS and discusses related policy issues, including bank leverage and the relationship between banks and risky investment firms. What is a TruPS? A trust preferred security is a hybrid investment instrument (combining features of equity and debt) issued by a trust. To create a TruPS, a firm establishes a trust, puts debt in it, then has the trust issue preferred securities. The preferred securities issued by the new trust are the TruPS, not the debt deposited in the trust, although TruPS themselves can be held in a trust which then issues new securities. TruPS typically pay a quarterly dividend, are redeemable by the issuer,