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Re: bcde post# 470704

Wednesday, 08/15/2018 5:00:00 PM

Wednesday, August 15, 2018 5:00:00 PM

Post# of 804427

This appears to completely replace it earlier plan.



This is false. The Safety and Soundness Plan (aka the Moelis plan) is a comprehensive plan for recapitalizing the companies and releasing them from conservatorship.

The presentation Moelis gave to FHFA about capital standards was only about capital standards because that's what FHFA asked for. It complements, not replaces, the Safety and Soundness Plan.

No company likes to wipe out their existing common shares except in bankruptcy under court supervision.



Dilution is not the same as wiping out. Moelis's plan doesn't involve wiping out anyone.