I understand your point and I think what strengthens your argument that the BoD has NO FIDUCIARY DUTY to current existing shareholders (including preferred) is simply Sheila Bair (former Chair of the FDIC during the Great Financial Crisis) in her Capital Comment Letter (she was writing as a "personal citizen") and one of the latest BoD's at one of the twins, was like, "I totally agree with Dr. T. Hoening that MORE CAPITAL NOT 4+% IS BETTER'".
I'm sure her letter is still there if you haven't already read it.
But this is one of the differences between you and me about how we disagree as to how future events may or may not unfold (who knows we could both be wrong!):
(1) I think the FHFA AND BoD will care about how existing cs and jps are treated, because how they treat existing shareholders will have a big impact on the willingness of new capital to assume the role of "private capital" in this private capital/public purpose partnership.
(2) The government has treated their current shareholders (i.e., their current 1st loss position capital partners) absolutely horribly (I heard it turns 12 yrs old THIS SUNDAY!, do you think that is a long time for a company that makes $10B/year to be in "conservatorship") businesses just don't work very well when 1 partner is an extraordinarily bad actor, ESPECIALLY WHEN IT'S THE US GOVERNMENT! This idea that investors will have Stockholm Syndrome is misplaced.
I think one other difference in our "vision" of the future is the timing of the capital raise, you insist, as soon as possible, but I think that means organically largely via retained earnings and a favorable resolution on the nws and spsa and probably some creative thinking from the FA's. I believe you think, MC will say, I don't give a damn about these shareholders who should have been wiped out in 2008, and my job is to get the twins capitalized to FULL CAPITALIZATION ASAP, and if that means jps get par and cs get diluted to kingdom come, OH WELL, TOO BAD, SO SAD!
Does this explain our disagreements in a nutshell? Am I missing something?
The funny part is that WE COULD BOTH BE WAY OFF! I mean, did you really see the NWS coming?
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