Not converting the juniors means $33B more in commons would have to be sold, involving its own dilution.
Exactly. Without a JPS to Common Conversion, Commons will be staring down an additional $33B in new shares.
And I can't for the life of me understand why anyone would say this isn't a bankruptcy. Calabria already said it is
Indeed. Calabria directly comparing the GSEs to Hertz stock should have set off everyone's alarm.
at least two massive restructurings will be needed before release: modifying Treasury's stake (to remove the seniors) and a capital raise (a recapitalization is a type of restructuring).