Jcmeg35

Assuming that Trsy & Fhfa move to R&R, I would think they would be incentivized to want to have as high a common price as possible to increase the value of warrants and also make it easier to bring in new capital. Other than the capital standards to be set by FHFA and the sequence which the conversions happen, are there any other levers that are available to increase the common value? To be clear I am not saying this will happen, but just trying to think through the incentives. I think the range of outcomes and probabilities associated with those outcomes make the common quite a crapshoot.

I would also like to say thank you to @Chereza as well as everyone else for your comments/thoughts over the years - as I have not made any contribution to date (mea culpa!). While my view is that recap is the most likely scenario in 2019 and beyond, I have also been trying to figure out other outcomes. To @rros and others, I am not sure I fully follow the basis for receivership and the "good bank/bad bank" idea. What "bad assets" would be separated in this scenario and what "good assets" would remain. Under that view what would be liquidated and what would be the rational for this? Further to that point, as I think others have mentioned, given how messy that process is, one would have to imagine it would create disruption to the ongoing operations that currently write new business, potentially creating big issues in the US housing market.