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| I dont know how a bank could foreclosure on a healthy loan that is paid as agreed. I'm guessing that is likely more coffee shop talk. Non-renewal of operating line is probably most common but that is far different than foreclosure.
I don't know why there would be consequences to an individual banker unless they personally misrepresented something. The biggest loans are approved by groups of people, could even be the board of directors.
Banks certainly don't get all their money back all the time. It's just part of the business. Obviously it is our jobs to mitigate the bank's exposure to that by making good credit decisions. Wouldn't make sense to call a good loan just because another went bad. We keep our lights on with good loans.
When these huge operations cost banks money because the banks were careless or even reckless, that is a good thing. That specific bank took that risk and didn't underwrite / manage the risk appropriately, so they should be on the hook. It should be a wake up call to be better in the future. The bank's loss doesn't cost anyone $ except the owners of that bank. Blanket regulation just because a few banks took stupid risks is not the answer. Very similar to gun regulation.
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Stamp and Boerson
