Montana'eer
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Yes they can call notes if they contain Due on Demand clauses- or if there is a technical default. Pretty common in commercial notes.
Gunwerks Sued By Creditors
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Montana'eer
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Back during the financial meltdown many banks called Notes on commercial clients that were tied to the automotive industries. Had one client who did molded plastics for Nissan and GM cars- trunk areas mainly. 2nd largest employer in the county and Fifth/Third bank called their 10mm LOC. They had an adverse industry change clause in the Note. We scrambled to assemble a group of community banks to participate in a replacement line to ensure they didn't go under.
Pretty common on commercial notes. However lender liability can bite a bank in the *** if they're not careful calling notes.
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They called the loan due on Monday and filled suit on Wednesday. We paid off the line on Friday.
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We were in technical default. They had the right to call the line. Long story, they could have handled it better.
Tidus56
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Really interesting, when they start calling notes does this typically signal that lender is preparing for merger, being purchased or doing poorly? Just curious why they started calling loans. My mother just messaged me that Wells Fargo called the loans of a company they worked with and put them under last week
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I've heard it's Goldman Sachs.
Montana'eer
Well-Known Member
Not necessarily. When there is an adverse financial shock like we've had, some larger banks will look at 'at risk' NAICS code clients and try to get out.
However most of the time it is either a financial default (missed payments) or a technical default (aging reports not boxing, collateral sold out of trust).
just depends
Montana'eer
Well-Known Member
That's a little onerous
Montana'eer
Well-Known Member
Seeing as though the Treasury Secty Mnuchin is a Goldman boy- I could see that happening. Goldman's market cap has sucked hind titty on the hog especially now.
They were looking for a reason to exit the relationship/agreement. You're better off!
lilharcher
Well-Known Member
Have a good laugh at all the people jumping to one side or the other with absolutely no knowledge of the situation or how the banking industry works. Let due process run its course. Have no idea who is at fault here, but will provide you all with some facts:
1) Gunwerks guys are innovators and good for the industry
2) if you take out a loan, you pay it back
3) don't rip off the consumer
4) Wells Fargo provides more money/credit/loans to the consumer and small businesses than any bank in this country......their mortgage portfolio is 2x+ the next competitor.
5) Yes, WFB's retail bank, under poor senior leadership that no longer exists, did a despicable act - opened thousands and thousands of unauthorized accounts, mostly by minimum wage employees to make BS sales goals. WFB generated slightly more than $2.2MM of fees, and paid fines more than $10Bn......again, despicable act, and one they are still paying for.
6) Despite all, Wells Fargo still has more deposits than they can put to work......the bank actually wishes they had less of your deposits. Again, they are the largest lender of any bank in the country to the consumer......the small guys, like you and me.
7) Again - don't steal from anyone (WFB) and always repay your obligations (Gunwerks).......the truth will come out, so let's reserve judgement until then!!
1) Gunwerks guys are innovators and good for the industry
2) if you take out a loan, you pay it back
3) don't rip off the consumer
4) Wells Fargo provides more money/credit/loans to the consumer and small businesses than any bank in this country......their mortgage portfolio is 2x+ the next competitor.
5) Yes, WFB's retail bank, under poor senior leadership that no longer exists, did a despicable act - opened thousands and thousands of unauthorized accounts, mostly by minimum wage employees to make BS sales goals. WFB generated slightly more than $2.2MM of fees, and paid fines more than $10Bn......again, despicable act, and one they are still paying for.
6) Despite all, Wells Fargo still has more deposits than they can put to work......the bank actually wishes they had less of your deposits. Again, they are the largest lender of any bank in the country to the consumer......the small guys, like you and me.
7) Again - don't steal from anyone (WFB) and always repay your obligations (Gunwerks).......the truth will come out, so let's reserve judgement until then!!
Montana'eer
Well-Known Member
I hear you. Fifth/Third Bank was a complete A—Hole with that business back in WV.
Be careful what you sign.
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