Theoretically the bank should have your debt secured against your assets which I would be able to seize and manage or liquidate as needed to recover their losses.
Biggest issue is debt secured against stocks and assets with inflated (fake) value which are quickly not worth anything when a business tanks, but that's on the bank's poor decision making which makes it their problem when shits fucked up
Also over leveraging of real assets. When the bank give you a loan they make that money appear. It never existed to begin with. They only need 10¢ on the dollar for loans, so your $350,000 mortgage or whatever only puts $35,000 at risk for them.
Paraphrasing, but owe the bank $100, that's your problem. Owe the bank $100 million, that's the bank's problem.
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Theoretically the bank should have your debt secured against your assets which I would be able to seize and manage or liquidate as needed to recover their losses.
Biggest issue is debt secured against stocks and assets with inflated (fake) value which are quickly not worth anything when a business tanks, but that's on the bank's poor decision making which makes it their problem when shits fucked up
Also over leveraging of real assets. When the bank give you a loan they make that money appear. It never existed to begin with. They only need 10¢ on the dollar for loans, so your $350,000 mortgage or whatever only puts $35,000 at risk for them.