RR, "The government" isn't really at stake here or it's reputation. If anything, Democrats could take credit for seeing to it that common share holders got paid eventually. That is in line with their platform.
Also, the White House is not covering for Sheila or Jamie or the OTS or anyone involved. It could be said that a win for equity is a win for the White House solely on the grounds that the those in the previous administration, OTS, FDIC and the current management of JP Morgan Chase all lost one of the final battles of the "financial reformation".
Just some thoughts.