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Richmond Eminent Domain Plan Goes to Court Showdown

BlackRock Inc., Pacific Investment Management Co., DoubleLine Capital LP and other bondholders are asking a court to block a proposal by Richmond, California, to seize underwater mortgages through eminent domain.

With this week’s vote by Richmond’s city council to press ahead with an effort its mayor claims will help homeowners avoid foreclosure and fend off blight, the dispute between the northern California oil refinery town and Wall Street moved today to the federal courthouse in San Francisco.