Trump appointee resigns after fight with democratic bank regulators
The Republican chair of the Federal Deposit Insurance Corp., who was appointed by then-President Donald Trump, said Friday that she was cutting short her term after a clash with Democratic banking regulators. Jelena McWilliams, who started a five-year term as chair in June 2018, will resign effective Feb. 4, she wrote in a letter to President Joe Biden. She is also stepping down as a director of the FDIC’s board. Her exit came after Rohit Chopra, a member of the board and the new director of the Consumer Financial Protection Bureau, complained that McWilliams refused to recognize attempts by Democratic regulators to review rules about bank mergers.
Decision looms that could determine fate of Alzheimer’s drug
Federal officials are wrestling with a decision that could go a long way toward determining the future of the Alzheimer’s drug Aduhelm, and whether significant numbers of patients use it. In January, Medicare, the federal health insurance program for people 65 and older, plans to issue a preliminary decision on whether it will cover the expensive medication. The Food and Drug Administration’s approval of Aduhelm in June has drawn fierce criticism because clinical trials showed the drug had significant safety risks and unclear benefits. Roughly 80% of potential Aduhelm patients are old enough to receive Medicare, making the program’s coverage decision crucial. Private insurers often follow Medicare’s lead.
‘Buy now, pay later’ loans may soon play bigger role in credit scores
“Buy now, pay later” online loans are getting attention from both regulators and the credit industry as consumers increasingly turn to them, and they may soon play a bigger role in credit scores. Loans from financial technology companies, including Affirm, Afterpay and Klarna, offer an updated version of layaway plans. The new offerings are generally used for smaller purchases. For now, many of these smaller, short-term loans aren’t reported in a consistent way to credit bureaus, so borrowers don’t build a formal credit history by using them. But as the loans become more mainstream, that’s changing.
New ban on surprise medical bills starts
For years, millions of Americans with medical emergencies could receive another nasty surprise: a bill from a doctor they did not choose and who did not accept their insurance. Those bills add up to billions in costs for consumers each year. A law that goes into effect Saturday will eliminate the risk that an out-of-network doctor or hospital will send an extra bill. The change is the result of bipartisan legislation passed during the Trump administration and fine-tuned by the Biden administration. It is a major new consumer protection, covering nearly all emergency medical services, and most routine care.
By The New York Times