doesn't it seem a pity NOT to come to agreement with the $33B existing jps and then be able to take advantage of raising much needed capital (ironically AFTER BEING TAKEN BY THE CONSERVATOR AND HANDED OVER TO THE US TREASURY) via an issuance of lower coupon jps?
I completely agree that it's a good idea to issue new non-cumulative prefs as part of the capital raise.
I just think that, given the capital rule's inclusion of a CET1 standard and the passage I quoted, such a pref issuance will make a conversion of the juniors to commons even more necessary so as to make the capital structure not too pref-heavy. The conversion adds $33B to CET1 capital compared to leaving the juniors as-is (no change to CET1) or redeeming them for cash (which decreases CET1 by $33B).
robert, bite your tongue ... don't you know this WH/admin is just looking for SCOTUS to provide cover to treat EXISTING shareholders fairly? ... the gov't is our friend and they are here to help us! ...