One rumour is that it will set up a Securities Holding Fund to buy preferred stock issued by the banks.

ECONOMIST: Japanese banks

You should call the fund company to find out what portion of the fund is in true preferred stock versus trust preferred.

WSJ: For Investors Seeking Income, Preferred Stock May Make Sense

Hayes has stopped honoring demands for conversion of the preferred and has sued the hedge fund operators in New York State Supreme Court.

FORBES: Pact with the devil