Use the normalized Fricke involution , and let . Choose integers with . The matrix lies in , and has determinant one and lies in , with . The displayed identity in the PDF reads . Taking double cosets therefore identifies the reversed correspondence with the diamond operator times the original one. Conjugation by reverses the two diagonal entries, so
The same finite-correspondence change of variables in the Petersson inner product transfers a matrix to its inverse and yields . The diamond operators commute with , so . Thus is a normal operator. Multiplying by a nonzero scalar does not change the conjugation formula.
The commuting normal operators , together with the finite-order diamond operators, admit simultaneous diagonalization for the Petersson inner product. Their restrictions to the new subspace of cusp forms have one-dimensional common eigenspaces by the newform multiplicity-one theorem. This additional theorem is the essential newform input: normality alone would allow higher multiplicities. Since every commutes with the good-prime operators and preserves the new space, it preserves each such line and is scalar on it. Normalize its nonzero first Fourier coefficient to one to obtain a newform. This gives the requested simultaneous eigenbasis of the new space.
By definition, every old form is a linear combination of lower-level oldforms by argument dilation. Repeatedly split each lower-level cusp space into its old space and its Petersson inner product orthogonal new space; induction on the level shows that the specified dilations of newforms span the full space. To prove independence, separate distinct primitive eigenforms by their good-prime eigenvalues, using the newform multiplicity-one theorem. For a fixed normalized form, its dilations are independent: order the distinct positive integers increasingly, and the coefficient of the least occurring kills its coefficient in any vanishing linear combination. Repeat for the next least . Thus these dilations are indeed a basis.
For trivial character, part (a) shows that commutes with all the good-prime operators, so it preserves the one-dimensional primitive line. Also for the determinant-normalized slash operator; a nonzero trivial-character form has even . Therefore
The power of in an unnormalized Fricke eigenvalue depends on the convention. The plain slash action gives , while the Hecke-style action gives . The PDF prints ; that value requires the deliberate rescaling and does not follow under either usual convention. Under that rescaling its displayed eigenvalue is ; all the preceding eigenspace and conjugation statements are unchanged.
Let for , and write and . The Hecke operator acts on the Fourier expansion by . Since , the primitive relation is . Hence and for . Substituting the argument directly in the Fricke involution gives
Thus, in the basis , put and let be the reversal matrix, . The matrices are
If the exam's rescaling is used, multiply the second matrix by .
Here is an explicit irreducibility argument for the prime-power old block at a bad prime. Any nonzero common invariant complex subspace contains an eigenvector of the restricted . Its eigenvalue is either or zero. If , the -eigenspace is ; containing it gives by reversal, then every by successive powers of . The kernel of is . If instead contains this vector, reversal and give
This is nonzero: the bad-prime eigenvalue of a trivial-character newform satisfies when , and when , whereas . If , the kernel is already , and the same reversal-and-shift argument works. Therefore the block has no nonzero proper subspace invariant under and the Fricke operator, and hence none invariant under the full ring in the question.

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