The City Council of Richmond, Calif., voted 4-3 to move forward with plans to use eminent domain to seize certain mortgages in an effort to help the housing sector. The council approved a motion to form a joint-powers authority so Richmond could invite other local governments to join its eminent domain scheme. However, Richmond remains far from actually implementing such a scheme. The city's bondholders, including Pacific Investment Management and BlackRock, are asking a court to prevent the city from moving forward with the proposal.
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