AIG occurred during the FIRE the HELL the near disaster - court unlikely to challenge GOV actions in an emergency
Third Amendment (not the early right or wrong infusion) was WAY after the fire or danger and right before Tax Assets and Bank Money and Writeups ---- it was stealing
I might suggest that SOME were working on that idea to stop the nonsense of GOV for a while lending money to F to be paid with it
BUT by the time the first day dawned on the Third Amendment it had no value and for sure was not putting out a fire and IMO clealry was not the action of a conservator
Again - be careful
One can IMO IMO consider lining up the first Action on F and F with the Action on AIG
But the real key - and focus of oh so many of the lawsuits is the insane dumb Third Amendment -- that is the ACE the Focus the Winner for us long equity
Assume the GOV was to help F and F capitalize by giving back say 80B of overpayment
What covers that budget hole ?
Seriously - how does GOV help with cash return without causing deficit
Easy The easiest way is the GOV give back the overpayments - and its a large part of recapitalization
The GOV sells shares - via the rights of the warrants - to recover such dollars for the TREASURY
F and F are free and have capital SR Pfd is gone Serious dilution but a private company - (and I do not know that the GOV need use its 79.9% potential --- just enough to cover the amount of cash they "return" to F and F as capital for the newco