Cooperative Mayor Takes on Wall St.

(EDITOR'S NOTE: GEO has been following Mayor Gayle McLaughlin for over two years: here, here, and here. Now the NYTimes has caught up with her.)

Eminent Domain: a Long Shot Against Blight

By SHAILA DEWAN

You can’t fight city hall, the saying goes. But Gayle McLaughlin, the mayor of Richmond, Calif., a city of 100,000 souls, would tell you that fighting Wall Street is harder. Even for city hall.

Ms. McLaughlin has a plan to help the many Richmond residents who owe more money on their houses than their houses are worth, but it’s one that banks like Wells Fargo, large asset managers like Pimco and BlackRock, real estate interests and even Fannie Mae and Freddie Mac, the mortgage finance giants, have tried to quash. Her idea involves a novel use of the power of eminent domain to bail out homeowners by buying up and then forgiving mortgage debt.

Read the rest at http://www.nytimes.com/2014/01/12/business/in-richmond-california-a-long-shot