Chicago Mayor Rahm Emanuel on Tuesday shot down the idea of using eminent domain to seize underwater mortgages, the Chicago Tribune reported.

"I don't think it's the right way to address the problem," Emanuel told reporters at a press conference while Chicago aldermen were in a committee meeting discussing a proposal to seize the mortgages from private investors and restructure them for borrowers. The City Council said in July that it intended to hold hearings to consider the proposal.

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