On what planet are investment bankers as ethical as what you...

On what planet are investment bankers as ethical as what you describe? They say these things not to be protective of investors. They say these things as a negotiating ploy to get the offering done cheaper and raise their fees.

If any of you are familiar with the Enron fraud in the US, what is striking about that situation was Enron failed to produce any cash flow statement, quarter after quarter! They raised round after round after round of new capital using entities that all existed off the balance sheet and all in full view of investment banks. The investment banks all had to clearly understand that a company that would not show a cash flow statement and kept raising new dollars repeatedly MUST have an income statement that wasn't translating to free cash flow, otherwise what were the uses of those funds? A sophomore in college could have spotted that this was all very dirty, yet none of those investment banks said no to that money.

I do grant your other points and it is quite possible the investment banks told RFG that they would not get a deal done above $1, and that was something RFG management did not want to try to sell to their board or their investors.