The Federal Reserve thinks that a bank's board is wasting time on regulatory issues, which distract the board from guiding bank strategy and adopting effective governance at their institutions. Now, Fed examiners report all regulatory matters requiring corrective action to a bank’s board as well as its senior management. The Fed wants to leave it to senior management to keep the institution’s board apprised of its efforts and its progress to remediate matters requiring attention.
The board of directors would still be responsible for holding senior management accountable for fixing supervisory flaws. This seems strange to me as who guarantees that management will tell the board.