Bond investors take aim at eminent-domain plan

BlackRock, Pacific Investment Management Co. 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, calling the plan unconstitutional. "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," John Ertman, a partner at Ropes & Gray, said in an e-mail on behalf of the investors. Separately, Freddie Mac is also considering suing Richmond.

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