My understanding

of the equity portion of this plan

The market has had a "Bear run" against the financials becaus TCE(tangible common equity) is too low in some of the banks(ok they are specific)

the FDIC uses Tier 1 assets and not TCE, but for some reason there is a MEME about TCE.

in response to this MEME

treasury is alowing the banks to convert the "Prefered stock" from being Prefered, to being Common Equity... AS NEEDED, based on the MEME.

The market goes "so common share holders willl be whiped out"

So then the treasury said "NO NO... because if they have to convert some of it into common equity that would be "SOME'... and because, the bank as needed will also be able to move it back to Prefered. Therefor it does not dilute the common shareholders

but this is way too complicated for traders at this point... they are this smart, but they are being very dumb at the moment.