J-Mac: Bloem Situation Not Uncommon

RE: Bank sues Mayor Bloem for loan breach

Jimmy-MAC: From someone in the biz, this is very common when dealing with a balloon note, especially given today’s regulatory climate. Often times, and I’m sure in the Mayor’s case, it has nothing to do with the financial state of the borrower and is simply a matter of timing. With all due respect to Adam, if the note has a demand feature, the bank generally has no other choice with protocol, as “looking good on reports” is generally required to appease regulators, stay in compliance and keep the FDIC off their backs to protect depository accounts (all the customers).

Question: How easy is it to get on the wrong side of a bank?