1. How does Hera allow this? Under the scenario of a court victory the sr pfds are paid off in full with the old 10% dividend. With the suspect accounting I doubt the entities needed any more than a combined 60 billion and they have paid that off in spades.
2. While I like some of the lesser known $50 pfds better than common, keep in mind that the jr pfds are not cumulative so no back dividends are owed.
There are some lesser known 50 pfds going for less than 7.
3. In any liquidation scenario the accounting from 9/ 2008 is highly suspect to say the least. More litigation on the horizon if they try that. Even Lambreth recognized the plaintiffs may have value owed them in a future liquidation but said the taking is not ripe.
4. Best thing for the government to do is release if they start to lose in court. With the warrants they are paid back in full plus another 180 billion. The longer this goes on, the more chance the hedge funds pursue legal action on the warrants and the bogus accounting. Win-win scenario for the tax payers, shareholders etc.
5. As for the government still being on the hook they are on the hook for all the big banks and they haven't seized 100% of all their profits.
In any case we just went through the 100 year flood and the government was really only on the hook for 70 billion at the worst. Fannie & Freddie still have about 45 billion in loss reserves still on the books to cover future losses.
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