Putting aside arguments that the total of SP is 1B --- and LP is separate - ETC ETC
One point - which I think is key
If the SP amount is agreed to be some 190B at first (?) and then shadow IOU growth ---- if so argued by GOV or whatever
The rules of securities -- aside from HERA bull
That rule - all definitions - all cases - says --- dividends on equity do not reduce the amount of equity. They are dividends - "adds" - and they are not interest which applies to debt. Debt - can be and often is constructed so interim payments are a combination of interest and principal and allows interest to then be calculated on remaining debt balance owed. Over time with routine payments and maybe an occasional principal only payment - the interest owed each period shrinks and shrinks --- as the rate stays the same and the principal is shrinking
But the below - copied - is not accurate -in that small world of it is equity (or so argued by GOV since day one and so treated since day one) to say the principal - investment is paid off. Simply not accurate in construct of debt and equity investments and instruments. THAT SAID - I firmly believe that any POTUS and or Treasury Secretary for say 10 years - has been able under Executive authority (similar to amendments without congress) to declare the senior preferred paid back !! This ability - which I believe exists - is not the same as any accounting or legal construct
The below is inaccurate - as much as I would like it to be true --- and as much as the same action but described differently is available
The money kept by the Treasury by the NWS should be applied to principle and 10% interest and over payment should be returned to the companies. $301 billion is more than enough to pay the liquidation preference and redeem the Senior Preferred Stock.
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