I agree. It makes far, far more sense to focus on Treasury's incentives rather than those of shareholders below them in the capital structure.
Well said. If FHFA and Treasury have thus far acted contrary to what one believes is moral or ethical, why on earth would one expect them to do differently in the future?
Instead it's better to think about what is legal and practical. And contrary to a somewhat popular belief, a senior-to-common conversion is both.