Securities Industry and Financial Markets Assn. notes that judge's decision finding premature a lawsuit against Richmond, California, over city's plan to seize mortgaged loans via eminent domain does not address merits of case, only timing
September 12, 2013
– SIFMA Statement on Judge Breyer's Ruling in Richmond Eminent Domain Case
SIFMA today issued the following statement from Timothy Cameron, managing director and head of SIFMA's Asset Management Group, on the Wells v. City of Richmond case relating to the use of eminent domain to seize mortgage loans:
"It is important to understand that no decision has been made on the merits of this case. Judge Breyer ruled that the case is not ripe, which is a ruling made on timing. Today's ruling does not mean Richmond's plan is legal; indeed SIFMA believes the use of eminent domain to seize mortgage loans contains numerous Constitutional and other legal defects, and that it would represent a flagrant misuse of a municipality's power. We fully expect the litigation will succeed on merit once the issue is ripe. SIFMA strongly opposes the use of eminent domain to seize mortgage loans, and believes it will harm the savings of everyday Americans around the country and have a negative impact on already stressed pension funds and the value of their investments."
The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.