Reflecting the views expressed by Gov. Powell after he took on supervisory responsibilities following Gov. Tarullo’s departure, the FRB has proposed aligning the responsibilities of boards of directors under its authority with those targeted at governance-level supervisory concerns, not the managerial issues more appropriately left to senior management. Critics have argued that directors are now so swallowed by complex supervisory questions better suited to experts and senior management that needed attention is not given to material policy lapses and violations, growing risk, and the need to alter fundamental strategy to ensure a viable franchise in the face of emerging risks and market innovation.
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