Maybe I get it. There is $19B+ available (true equity-depends on tax changes) for shareholders in receivership. Since the preferreds have preference for most of that there will be relatively no equity remaining for the common stock. So the bottom line is, get out of commons and into preferreds just in case receivership wins.
Should release win, then the gain on commons is perhaps significantly better than gain on preferreds. What's the multiplier?
So depending on ones financial situation and risk tolerance the call is up to each individual investor.
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