Another argument against an equal conversion/equal haircut on JPS/SPS is that the JPS are senior to commons. If there were a haircut on JPS, commons would become worthless. (This was the case with AIG, where there was a 10% haircut on JPS, and commons became worthless.). Otherwise, the seniority of JPS relative to commons would not be taken into account.
On the other hand, commons becoming worthless is not desired by the government. After all, it wants to monetize its common holdings. Even if treasury held two trillion common shares worth 0 cents after an equal SPS/JPS conversion, the total value of this position would still be zero:
This is because 2 trillion x 0 = 0
By contrast, two trillion shares of common stock x 5 cents yields the desired $100 billion.
KThomp19 wrote several times: If commons were worth even one cent, JPS would be worth par.
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