Debt to equity bail-outs are a simply giving the bank an...

Debt to equity bail-outs are a simply giving the bank an instrument that they can put in the bottom drawer and resell at some later stage to recover their debts. The pricing therefore wiill include (a) debt value; (b) notional holding cost / opportunity cost; (c) risk premium (enormous) to compensate them for event they cannot in turn place the instruments and (d) whatever is left in the till plus 10% in the form of fees.

I suggest in terms of pricing (a) their starting mentality is that the alternate is adminsitration in which case current shareholders would have got nothing (b) everything they leave for current shareholders is less to give to the next generation of shareholders (aka those the financiers offload the script to).

Do you honestly think they'll leave 50 cents??? We are talking financiers here... not charitable institutions or caring and sharing kind of people...

An opinion only. I refer to Pasminco debt for equity swap... wasn't much left there. DYOR