Golden State's 2nd-In-Command To Wall Street: Cease Threats Towards Those Considering Use Of Eminent Domain To Flush Away Crappy Underwater Mortgages

Reuters reports:

• California Lieutenant Governor Gavin Newsom on Friday warned influential investor group Securities Industry and Financial Markets Association to "cease making threats to the local officials of San Bernardino County" over a plan to use eminent domain to seize underwater mortgages from private investors.
  
  San Bernardino County, located east of Los Angeles, and some of its towns have set up a joint authority that would use the power of eminent domain to forcibly purchase distressed mortgages. Rather than evict homeowners through foreclosure, the public-private entity would offer residents fresh mortgages with reduced debts.
  
  Newsom said governments that choose to employ eminent domain could be subject to a form of boycotting from mortgage investors, who would stop lending in communities that might use this power.
  
  The Securities Industry and Financial Markets Association, known as SIFMA, and other investment trade groups have warned that the proposed use of eminent domain could scare away future mortgage financing.

For more, see California official chastises SIFMA for eminent domain "threats".