Are Bank at auctions?

I hear the banks have people at the auctions. Is it the second that would want to “up” the price to get any overflow from the first? Does the bank that has the first have any reason to be there, aren’t they already getting their money from the sale at the auction? I’ve been to an auction where I heard a girl on the phone say," 207,000, OK!!" She bid to 207,000 then just stopped why not 210,000? It sold for 250,000 she said to her friend “boy they’ll be happy”. That sounds like someone from a bank. Is it the first or second? Is it common for that to occur? Why would the first be there bidding, if it was the first? I get it for the second to be there.

You heard wrong. If the bank wants to bid the property up they can simply give “high-low” instructions to the auctioneer, and the auctioneer can bid on their behalf. Seconds will bid to protect their position (rare these days as bidding has to be over the amount owed on the first), but again the auctioneer can do this on their behalf, so they rarely, if ever, come themselves.
Lots of investors send folks down to bid for them and give them instructions over the phone.
Now for every rule there are exceptions. Hard money lenders will often get actively and directly involved in the sale, as well commercial lenders in certain instances. Have seen both on rare occasion. Never seen anyone from a major lender - simply no reason for them to come.