Management gave reassurances to investors that credit was stable and that the provision would be around $5 million per quarter. And then they raise $ via the equity offering and now investors know the real truth. This money was raised to plug a gapping hole in their balance sheet from their poorly run bank. These are retail brokerage guys disguised as bankers. And they believe they know how to underwrite credit...Well I'll be weeping tomorrow when this stock opens tomorrow down 10%, 15% maybe 20%.........Management has a credibility issue now since I/we don't believe they know whats in their loan book!!!
To what lie are you referring? They were specific I think, they are experiencing large losses in commercial real estate and have had to increase loan loss reserves which are a charge to current earnings. This problem is somewhat of a surprise since north Texas is not one of the more depressed areas. It is a reflection on the banks risk management. SWS has for too long performed poorly and I suspect it's a reflection on the management as you imply, but I don't think calling them liars is fair. You need to blame yourself for having made a bad investment. WW