Now I realize that it seems difficult to follow the complex financial machinations that we are performing to pretend we aren't nationalizing anyone's bank but I do wish you'd listen Ken, it's perfectly simple, if you're not giving your bondholders a hair cut, you don't have to put your executive's bonuses down on the lower peg, you just collect the treasury bills before you do your Congressional hearing prep after a taxpayer approved lunch at McDonalds when you've written your resignation letter before the shareholders meeting, move your own bonus down a peg, greet the auditors and report to Mr. Geithner before lunch that you've got your preferred shares dividend payment and of course your conversion to common documents.
The Treasury Department on Wednesday launched a new program that would provide capital injections into the nation's 19 largest banks based on a "stress test." According to the "stress test" approach, government regulators are looking at each financial institution's balance sheets and capital needs over the next two years and evaluating how much capital the company will need over that period. Based on that analysis the government would let institutions exchange taxpayer-funded preferred shares for common shares when losses that were forecast by the stress test actually occur.
Treasury: New bank infusion can convert to common equity [Marketwatch]