The city's in the same swirling mass of deep doodoo that Oakland, Detroit, Philly and Biloxi are swimming in because the majority of the residence are black, poor, and live in subprime houses with mortgages far underwater.
So what's McLaughlin doing? She's using eminent domain to seize bank-owned properties. Why? To resell them at half-price fire-sales back to the same people losing them in foreclosure.
McLaughlin and the plan's backers think they are on a crusade. But the truth is they are doing little more than abusing their power and violating the constitution.
"I am absolutely not backing down," McLaughlin yelled. Wells Fargo is suing her and the city, of course.
Wells Fargo says Newark, N.J., N Las Vegas, Nv, El Monte, Ca, and Seattle are all mulling similar plans. The bank says, and the Angle agrees, if these cities use eminent domain to seize bank property the entire mortgage industry will grind to an ignominious halt.
