If the bank's prospects for recovery are good and it pays back the government within two years, all of the stock's future gains go to existing common shareholders.
Under the out-of-court proposal, existing common stockholders would receive 5percentt of the equity in the company, and preferred stockholders would receive 10percentt.
Because a complete government takeover could wipe out or at least dilute the value of existing common shares, investors sold bank shares at a furious pace last week.
"A decision to innovate under the bill does not prevent a doctor from also relying on the existing common law defence.
The existing common and preferred shares are unlikely to have much if any value for a long period of time, if ever.
The government has also negotiated a five-year transition before the court's powers over existing common police and judicial measures kick in.
Another well-worn objection to legislating for the protection of human rights is that the existing common law is such a magnificent creature that no more needs to be done.
And when the government introduced the Compensation Act 2006, it clarified the existing common law on negligence to make it clear that people who take reasonable care or exercise reasonable skill cannot be held liable for untoward incidents.
