Chicago-based Corus Bank was once a prominent lender in the world of condominium development. But in 2009, Corus became just another failed bank with one notable difference – Corus’ assets were transferred to a unique joint venture between the FDIC and an investor group led by Starwood Capital. Although unconventional, the terms and evolution of this FDIC-Starwood venture potentially could be adapted as a private-sector model to help banks maximize the return on their growing inventory of real estate owned and troubled loans. Managing and/or developing real estate remains largely outside of a banker’s area of expertise, as banks by. Read More.

The operating results and cash flows of many construction contractors have been negatively impacted by the recent declines in the U.S. economy and the related decrease in demand for construction contractor products and services. In many instances, unfavorable operating results have diminished contractor bonding capacity and sometimes left contractors unable to obtain sufficient bonding for available work. In this environment, it’s more important than ever for management to refocus on the basics. A surety’s evaluation of a construction contractor involves a number of factors, such as financial performance, contractor character, a successful track record, a quality management team, a succession. Read More.