Developer says the FDIC is trying to stymie project

05/24/2010 | Wall Street Journal, The

Developer Sonny Astani says a construction loan now owned by the Federal Deposit Insurance Corp. and an investment group led by Starwood Capital Group is impeding his efforts to complete a Los Angeles-based mixed-use project by delaying drawing up a budget and paying subcontractors. The project's fundamentals are fine, he says. The loan went to the FDIC when lender Corus Bank failed. The entity managing the project on behalf of FDIC says Astani's financial projections are off and his paperwork incomplete.

View Full Article in:

Wall Street Journal, The

Published in Brief: