So under the assumption that everything remains the same, these are the order of events that would have to happen
1. Warrants are exercised 2. Lawsuits Settled 3.Raise 300B(capital requirements 300B - 45B) + 250B (Liquidation Preference) so a total of 550B (how they'll convince 550B i'm unsure.
But the caveat is they can only raise 140B so, essentially there is absolutely no way to exit conservatorship without something like eliminating the liquidation preference.
Quote: All equity raises after that have their proceeds go to Treasury instead of FnF, and the senior pref liquidation preference gets reduced by that amount.
I'm not quite sure where it says the senior liquidating preference gets reduced by future equity raises? Can you post a quote from the amendment that says that, or is it an assumption?