There is a significant bet being made short Bank of America common, long the preferred. The theory is that that the preferred will get converted into common similar to what Citigroup did.
I don't think BAC will convert the preferred because of the stress test. I think C was a special case where they knew they needed to preempt the stress test and convert existing preferred share holders to prevent de facto nationalization. At this point, banks that need more money can still take on more government preferred rather than convert existing preferred.