This will put a lot of baggage in the past and allow GFED to legally resume a dividend on the common stock if they chose to do so. The additional shares will save the expense of the dividend on their preferred stock they are redeeming. This will reduce book value per-share, but book value per share was higher than what the stock had been trading at recently.
This should also help liquidity to some extent, so that is a positive. I think this is a mostly positive event.
I agree totally with principle. The downside of reducing book value is far outweighed by the positives, paying dividend on common stock, paying off preferred stock and increasing liquidity. This should allow the management team to concentrate on banking.