One of the ways the bad banks get involved is by stepping in before a developer defaults, effectively taking over the trust loan, albeit with higher returns and a longer life.

WSJ: Chinese Developers Face Pinch

In past bailouts, including the Resolution Trust Corp. formed in 1989 to help resolve the savings-and-loan crisis, the ultimate taxpayer cost was magnitudes larger than originally projected.

FORBES: Magazine Article

One option is to set up a version of America's Resolution Trust Corporation, which inherited and sold off the assets of failed savings and loan associations in the early 1990s.

ECONOMIST: And it finally came to tears

The Resolution Trust Corp. came to life in 1989 after the failure of the Federal Savings and Loan Insurance Corp.

FORBES: Magazine Article

And the Peace Dividend Trust submitted an innovative loan guarantee model aimed at empowering local SMEs to bid for donor procurement contracts in post-conflict or post-disaster economies.

WHITEHOUSE: Office of Science and Technology Policy Blog

For advice, it sought out former regulators from the Resolution Trust Corporation, charged in the 1980s with cleaning up America's savings-and-loan (thrift) crisis, and from Securitas, which handled Sweden's banking crisis in the early 1990s.

ECONOMIST: Lessons in dealing with duff loans