No one on the JPS crew is looking at this logically! First, if any shareholder class was going to get a preferential treatment, it would have been done just before the conservatorship, most likely.
Seniors are above the JPS, Does any JPS holder refute this?
Governments warrants are above commons AND JPS,,does anyone refute this factoid?
Therefore your place in the capital stack is BELOW the governments. It was done like this on purpose. I'm pretty sure the reasoning was (and they knew this at the time) there was no way in hell they were letting the GSE's fail aka receivership, the market termoil and economic consequences were too drastic to even contemplate, so they rigged a CONservatorship so that if the GSE's did prove unsalvagable or in dire straits due to a bad market down turn, then government would entitle itself to their total worth (nationalize) to take over and protect. It's still like that now, except the government dug itself in deep, like the blood sucking tick that it has become on the GSE's.
So no, no one gets any preferential treatment coming in, and I'm betting the same if we ever get out. So guess all you want on the outcome. Capital raise can very easily be manipulated to whatever treasury and FHFA want, Calabria proved this when asking for input but using none of it. So one day they will say enough has been raised for release (possible consent decree which will set goals/milestones that have to be met), cap rule will get manipulated down or treasury will agree to a temporary higher backing until GSE'S accumulate whatever cap level is deemed bulletproof safe. Until then....YES, we build quarterly.
Due to government having both share classes by the balls, I predict they screw both share classes equally if they decide to act on their greediness. The smart thing for them to do is release via cancellation of both the ball (seniors) and chain (warrants), but government truly is a greedy bass-terd, so look to them trying to squeeze blood from this turnip, a little or more.
My honest evaluation as I see this 14 year predicament, and being here for all of it.... Anyone thinking otherwise has dillusions of grandeur as far as drastic lopsided solutions.
