Good post Chessmaster! This is exactly why if they try to use warrants to also rob more value, and lessening capital, while still trying to keep their foot in the door with either the seniors or the warrants, no investor is going to want to risk being partners with a government that has shown it's willingness to cancel investors property. People saying they can re-ipo new shares making current holders zero, don't realize that then the warrants become zero, they are tied to us shareholders shares. The warrants are a right to current shares, not newly issued one's. Then they say convert seniors to more shares, there by destroying shareholder value. What's to stop government for changing the amended HERA again to issue itself more warrants after converting the old one's? There by destroying any new shareholders value they sold converted shares too? If they do not put the twins back, pretty much sound, they do nothing but set the twins up for another conservatorship down the road....maybe that is their end game, so they can easily bail out a bunch of screw up bank buddies again so they can all walk away with 10's of millions golden parachutes?
We would be having far different discussions here if the twins were actually pushed into bankruptcy like the banks were trying to do early on. They figured out it was not a good idea at all, because then they had no scapegoat to unload on when they screw up again, and government would have no choice but watch many banks fail as nothing would be in place to control the inevitable runs on banks. Yet the greed of these same banks are why we are where we are. The government and bank lobby probably also realized early on that bankruptcy would have made preffered and shareholders far better off. Someone here did a study on the outcome if we were put in BKR, and shareholders would have been at about $16/18 a share. Many would have not recouped their original investment at that price, but the bankers and government were too busy scheming on how to take as much value as they could. Jps would have gotten their par also in BKR much easier and more quickly. As the bankruptcy rumor was being pushed during the Obama administration, those idiots came to realize the twins were not only too big to fail but also TINA. Yet here we are with the government holding us hostage, basically, because so many in government made so many bad calls and decisions. Their conservatorship law did nothing to stream line the processing of too big to fail companies as they thought it would, we as guinea pigs are the prime example of their own failure at law making. This is what they will not admit too and why we are in and endless court battle where certain government owned judges make up meanings of words or adjudicate based on an "if" or "or" or "but" instead of following the master guideline - the constitution.
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