Wasn't it an arms length transaction? If it was a "stupidly irresponsible amount of money", the people supplying the money made the mistake. It isn't the government's responsibility to prevent people from loaning "stupidly irresponsible amounts of money" to anyone (at least where fraud isn't shown), nor to protect those lenders from suffering the consequences of their own stupid choices on who to loan money to.
Trump had financed the $1 billion project largely with junk bonds, which meant very high interest payments.
High interest rates go along with high risk. If the lenders weren't willing to accept the risk of possible default, they should have just bought US government bonds.
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The risks are buried deeply, by purpose.
Trump is moral toilet paper.