[From article]
What kind of bondholder or lender would willingly sell his property at 20 percent below market? None in his right mind, without the threat of eminent domain. Predictably, bondholders and lenders—including Wells Fargo Bank—have taken Richmond to court. Last month, lawyers for the city asked a federal court to throw out the lenders’ lawsuits, which allege that the city’s plan violates the constitutional requirement that governments pay just compensation for taken property. Two weeks earlier, Richmond’s mayor and other elected city officials showed up unannounced at Wells Fargo’s headquarters in San Francisco demanding that the bank drop its complaint. A security guard turned them away.
http://www.city-journal.org/2013/cjc0912sg.html
STEVEN GREENHUT
Eminent Scam
A plan to rescue some Californians from possible foreclosure sets a dangerous precedent.
12 September 2013
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