Sadly it's gotten to the point where these guys are too big for the bank to be concerned with whether they do something unethical like default.

The bank takes the knock,carries on as if it's business as usual in an effort to prop up their own revenue.

Too big to fail I guess.

That has its own cost. If that’s less than keeping it then it was a good decision.

Commercial loans are priced higher than residential. The higher risk of default is built into the economics.

The bank also has rights on the property after it goes into default. They don't lose all their money.