Regulation and Deregulation of Industry

Subterms

    More stories

    • 100 Shares99 Views

      in Elections

      Christy Goldsmith Romero Is Front-Runner to Lead F.D.I.C.

      by

      The front-runner for the bank regulatory job is Christy Goldsmith Romero, a member of the Commodity Futures Trading Commission.Three weeks after President Biden vowed to pick a new leader for the Federal Deposit Insurance Corporation, the bank regulator shaken by a vast workplace abuse scandal, a front-runner has emerged: Christy Goldsmith Romero, who sits on the five-member Commodity Futures Trading Commission, according to two people with knowledge of the administration’s thinking.Ms. Goldsmith Romero is a lawyer who, after the financial crisis, spent more than 12 years in an office created by Congress to investigate fraud and other misconduct by banks that received money from the government’s roughly $450 billion crisis rescue package, the Troubled Asset Relief Program. From 2011 to 2022, Ms. Goldsmith Romero led the office as the special inspector-general for the program.Her work exposing fraud, which often put her at odds with not only bankers but also some government officials who were concerned about the potential damage it would do to overall public opinion of the bailout, has made her especially appealing for the job of cleaning up the F.D.I.C., said the people, who asked for anonymity to discuss the matter.Mr. Biden has not made a final decision. Ms. Goldsmith Romero’s position as the front-runner for the job was first reported by The Wall Street Journal.Ms. Goldsmith Romero declined to comment for this article.Republicans and Democrats both want a new leader for the bank regulator as soon as possible. Managers there were routinely sexually harassing junior employees and working to silence anyone who complained, according to reports last fall by The Wall Street Journal. The fact that Ms. Goldsmith Romero is a woman and a member of the L.G.B.T.Q. community — she is bisexual — is also seen as a plus, the people said, because she may be better able to build trust and restore morale among embattled junior employees.And there’s another advantage to her candidacy: Ms. Goldsmith Romero has been unanimously confirmed by the Senate — twice. Her most recent confirmation, for the C.F.T.C. post, was in 2022, recently enough that the paperwork she submitted to the Senate as part of her nomination process, as well as the background check she underwent at the time, are likely to still be valid.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 88 Shares179 Views

      in Elections

      FDA Panel Weights MDMA Therapy for PTSD

      by

      An independent group of experts is meeting Tuesday to consider whether to allow use of this illegal drug, also known as Ecstasy, to treat PTSD. The Food and Drug Administration is weighing whether to approve the use of MDMA, also known as Ecstasy, for treatment of post-traumatic stress disorder. An independent advisory panel of experts will review studies on Tuesday and is expected to vote on whether the treatment would be effective and whether its benefits outweigh the risks.The panel will hear from Lykos Therapeutics, which has submitted evidence from clinical trials in an effort to obtain agency approval to sell the drug legally to treat people with a combination of MDMA and talk therapy.Millions of Americans suffer from PTSD, including military veterans who are at high risk of suicide. No new treatment for PTSD has been approved in more than 20 years.What is MDMA?Methylenedioxymethamphetamine (MDMA) is a synthetic psychoactive drug first developed by Merck in 1912. After being resynthesized in the mid-1970s by Alexander Shulgin, a psychedelic chemist in the Bay Area, MDMA gained popularity among therapists. Early research suggested significant therapeutic potential for a number of mental health conditions.MDMA is an entactogen, or empathogen, that fosters self-awareness, feelings of empathy and social connectedness. It is not a classic psychedelic like LSD or psilocybin, drugs that can cause altered realities and hallucinations. Among recreational users, MDMA is commonly known as molly or Ecstasy.In 1985, as the drug became a staple at dance clubs and raves, the Drug Enforcement Administration classified MDMA as a Schedule I substance, a drug defined as having no accepted medical use and a high potential for abuse.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares189 Views

      in Elections

      Electricity From Coal Is Pricey. Should Consumers Have to Pay?

      by

      Environmental groups are making a new economic argument against coal, the heaviest polluting fossil fuel. Some regulators are listening.For decades, environmentalists fought power plants that burn coal, the dirtiest fossil fuel, by highlighting their pollution: soot, mercury and the carbon dioxide that is dangerously heating the planet.But increasingly, opponents have been making an economic argument, telling regulators that electricity produced by coal is more expensive for consumers than power generated by solar, wind and other renewable sources.And that’s been a winning strategy recently in two states where regulators forbade utilities from recouping their losses from coal-fired plants by passing those costs to ratepayers. The Sierra Club and the Natural Resources Defense Council, two leading environmental groups, are hoping that if utilities are forced to absorb all the costs of burning coal, it could speed the closures of uneconomical plants.The groups are focused on utilities that generate electricity from coal and also distribute it. Those utilities have historically been allowed to pass their operating losses to customers, leaving them with costly electric bills while the plants emitted carbon dioxide that could have been avoided with a different fuel source, according to the environmental groups.About 75 percent of the nation’s roughly 200 coal-fired power plants are owned by utilities that control both generation and distribution.In 2023, utilities across the United States incurred about $3 billion in losses by running coal-fired power plants when it was cheaper to buy power from lower-cost, less polluting sources, according to RMI, a nonprofit research organization focused on clean energy. About 96 percent of those losses were incurred by plants that controlled both power generation and distribution, the organization said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 163 Shares109 Views

      in Elections

      There’s a Program to Cancel Private Student Debt. Most Don’t Know About It.

      by

      More than a million borrowers who were defrauded by for-profit schools have had billions of dollars in federal student loans eliminated through a government aid program. But people with private loans have generally been excluded from any relief — until recently.Navient, a large owner of private student loan debt, has created, but not publicized, a program that allows borrowers to apply to have their loans forgiven. Some who succeeded have jubilantly shared their stories in chat groups and other forums.“I cried, a lot,” said Danielle Maynard, who recently received notice from Navient that nearly $40,000 in private loans she owed for her studies at the New England Institute of Art in Brookline, Mass., would be wiped out.Navient, based in Wilmington, Del., has not publicized the discharge program that helped Ms. Maynard. Other borrowers have complained on social media about difficulties getting an application form. When asked about the program and the criticisms, a company spokesman said, “Borrowers may contact us at any time, and our advocates can assist.”So a nonprofit group of lawyers has stepped in ease the process: On Thursday, the Project on Predatory Student Lending, an advocacy group in Boston, published Navient’s application form and an instruction guide for borrowers with private loans who are seeking relief on the grounds that their school lied to them.“We want to level the playing field and let people know, instead of having it be this closely held secret,” said Eileen Connor, the group’s director.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 150 Shares169 Views

      in Elections

      Biden Admin Struggles to Address Sharp Rise in Deaths From Extreme Heat

      by

      For more than two years, a group of health experts, economists and lawyers in the U.S. government has worked to address a growing public health crisis: people dying on the job from extreme heat.In the coming months, this team of roughly 30 people at the Occupational Safety and Health Administration is expected to propose a new rule that would require employers to protect an estimated 50 million people exposed to high temperatures while they work. They include farm laborers and construction workers, but also people who sort packages in warehouses, clean airplane cabins and cook in commercial kitchens.The measure would be the first major federal government regulation to protect Americans from heat on the job. And it is expected to meet stiff resistance from some business and industry groups, which oppose regulations that would, in some cases, require more breaks and access to water, shade and air-conditioning.But even if the rule takes effect, experts say, the government’s emergency response system is poorly suited to meet the urgency of the moment.Last year was the hottest in recorded history, and researchers are expecting another record-breaking summer, with temperatures already rising sharply across the Sun Belt. The heat index in Miami reached 112 degrees Fahrenheit last weekend, shattering daily records by 11 degrees.The surge in deaths from heat is now the greatest threat to human health posed by climate change, said Dr. John M. Balbus, the deputy assistant secretary for climate change and health equity in the Health and Human Services Department.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares159 Views

      in Elections

      Ether Cryptocurrency ETFs Are Approved by the SEC

      by

      The Securities and Exchange Commission gave its blessing to a fund that tracks the price of the most valuable cryptocurrency after Bitcoin.Federal regulators on Thursday approved an investment product tied to the cryptocurrency Ether, the most valuable digital asset after Bitcoin, in a major boost for the crypto industry.The Securities and Exchange Commission said a group of exchanges could begin listing investment products known as exchange-traded funds, or E.T.F.s, linked to the price of Ether. The products would offer an easier and simpler way for people to invest in crypto, potentially boosting prices and promoting wider adoption of digital currencies.In January, the S.E.C. approved similar products that track the price of Bitcoin, leading to a flurry of new investment that helped propel Bitcoin’s price to a record high.The impact of the Ether approval could take longer to hit the market. Before the exchanges can start offering Ether E.T.F.s, the S.E.C. must also approve a separate set of applications from companies that want to issue them, including from major financial firms like BlackRock and Franklin Templeton. That process could take weeks or months, according to financial experts.An S.E.C. spokeswoman said the agency had no comment beyond a formal order approving the products.The news prompted celebration in the crypto industry. A representative for 21Shares, one of the companies seeking to offer the Ether investment product, called it an “exciting moment for the industry at large.”But industry critics called the approval a dangerous development that would encourage wider investment in a volatile market.“The S.E.C. failed to live up to its mission to protect investors and the markets,” Benjamin Schiffrin of Better Markets, a nonprofit that fights for stricter financial regulations, said in a statement.Offered by mainstream financial services firms, E.T.F.s are essentially baskets of assets — rather than buying the assets directly, customers buy shares in these baskets. The products are easy to trade, from brokerage accounts with companies like Vanguard or Charles Schwab, and are popular with wealth advisers and other financial mangers.In the crypto world, E.T.F.s offer another key advantage: simplicity. Rather than navigating the complexities of an online crypto wallet, a customer could go online and buy shares in a Bitcoin or Ether E.T.F. alongside stocks traded on Wall Street.For years, crypto advocates have seen these products as a promising way to encourage wider use of digital currencies. Before the Bitcoin E.T.F.s were approved, crypto companies battled the S.E.C. in the courts, securing a legal victory in August that forced the agency to allow the products.The Bitcoin E.T.F.s have proved to be enormously popular, attracting billions of dollars in investment.The price of Ether has rebounded over the last few months, after a crypto downturn that started in 2022. Ether currently trades at about $3,800 per coin, more than 20 percent off its high of just under $4,900.That’s a small fraction of the price of Bitcoin, which trades at about $68,000 per coin. More

    • 100 Shares149 Views

      in Elections

      Supreme Court Rejects Challenge to Consumer Watchdog’s Funding

      by

      A decision against the agency, the Consumer Financial Protection Bureau, could have cast doubt on all of its regulations and enforcement actions.The Supreme Court rejected a challenge on Thursday to the way the Consumer Financial Protection Bureau is funded, one that could have hobbled the bureau and advanced a central goal of the conservative legal movement: limiting the power of independent agencies.The vote was 7 to 2, with Justice Clarence Thomas writing the majority opinion.Had the bureau lost, the court’s ruling might have cast doubt on every regulation and enforcement action it had taken in its 13 years of existence, including ones concerning mortgages, credit cards, consumer loans and banking.The central question in the case was whether the way Congress chose to fund the bureau had violated the appropriations clause of the Constitution, which says that “no money shall be drawn from the Treasury, but in consequence of appropriations made by law.”Justice Thomas said the mechanism was constitutional.“Under the appropriations clause,” he wrote, “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes. The statute that provides the bureau’s funding meets these requirements. We therefore conclude that the bureau’s funding mechanism does not violate the appropriations clause.”Justice Samuel A. Alito Jr., joined by Justice Neil M. Gorsuch, dissented.The bureau, created after the financial crisis as part of the 2010 Dodd-Frank Act, is funded by the Federal Reserve System, in an amount determined by the bureau so long as the sum does not exceed 12 percent of the system’s operating expenses. In the 2022 fiscal year, the agency requested and received $641.5 million of the $734 million available.A unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit, in New Orleans, ruled in 2022 that the bureau’s funding method ran afoul of the appropriations clause.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 150 Shares189 Views

      in Elections

      California Will Add a Fixed Charge to Electric Bills and Reduce Rates

      by

      Officials said the decision would lower bills and encourage people to use cars and appliances that did not use fossil fuels, but some experts said it would discourage energy efficiency.Utility regulators in California on Thursday changed how most residents will pay for energy by adding a new fixed monthly charge and lowering the rates that apply to energy use. Officials said the shift would reduce monthly bills for millions of residents and support the use of electric vehicles and appliances that run on electricity, rather than fossil fuels.The decision by the California Public Utilities Commission will apply to the rates charged by investor-owned utilities, which provide power to about 70 percent of the state. Starting next year, most customers of those companies will be required to pay a $24.15 monthly charge. Low-income customers will pay $6 to $12 a month.Regulators said the revenue from the fixed charge would be paired with a roughly 20 percent reduction in rates assessed by how many kilowatts of energy were used per hour by a home or business. (The average American home uses around 1,000 kilowatt-hours in a month.) California’s residential electric rates, which averaged 31.2 cents per kilowatt-hour in February, are the highest in the country after Hawaii, where rates were about 44 cents, according to the federal Energy Information Administration. The national average in February was 16.1 cents.Some energy experts have argued that California’s high rates for energy use are very likely discouraging some people from buying electric vehicles, heat pumps and induction stoves to replace cars and appliances that run on gasoline and natural gas.“This new billing structure puts us further on the path toward a decarbonized future, while enhancing affordability for low-income customers and those most impacted from climate change-driven heat events,” said Alice Reynolds, president of the utilities commission.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More