Banks, investors and their allies opposed to the City of Richmond, CA, using eminent domain to seize underwater mortgages, refinance and repackage them for sale to other investors were scheduled to have their first hearing in court at week’s end. Current investors, through trustees Wells Fargo and Deutsche Bank AG, have sued in U.S. District Court to block the plan. Parties in Wells Fargo Bank, National Association, as Trustee, et al., plaintiffs, vs. City of Richmond, California, a municipality; and Mortgage Resolution Partners LLC, defendants, Case No. CV-13-3663-CRB, were to appear Sept. 12 and Sept. 13, before Judge Charles Breyer of the U.S. District Court for the Northern District of California in San Francisco. The Securities Industry and Financial Markets Association and the U.S. Chamber of Commerce jointly submitted...