Bond investors aim to block city's eminent domain plan

BlackRock, Pacific Investment Management and other bond investors have filed a lawsuit against Richmond, Calif., and Mortgage Resolution Partners in an attempt to block them from using eminent domain to seize mortgages. Richmond's plan is unconstitutional, according to the investors' complaint. “Mortgage Resolution Partners is threatening to seriously harm average Americans, including public pension members, other retirees and individual savers through a brazen scheme to abuse government powers for its own profit,” according to John Ertman, a partner at Ropes & Gray. Read SIFMA's statement on the lawsuit. Learn more at SIFMA's Eminent Domain Resource Center.

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