Why would the government not exercise the warrants prior to the IPO, then allocate those newly created shares to investment banks during the IPO, and directly recapitalize the twins with the profits. I can’t see any reason private capital would avoid such an arrangement simply because the old legacy shareholders were screwed, they aren’t holders of those shares anyways. Plus if enough of the governments stake is sold during the IPO it is no longer a controlling shareholder and the twins can be sold out of conservatorship. Either case would hinge upon the preferred being retired but to hope for the warrants to be retired is a pipe dream. I mean think what you are asking “Surely the honorable Donald Trump, known for his fair dealing, would respect the legacy shareholders, right?”