Fed Moves to Drop Some Prior Demands on Banks to Fix Flaws (1)

The Federal Reserve has signaled to lenders it plans to abandon some of the confidential warnings it previously sent them to improve operations as Vice Chair Michelle Bowman continues to relax the central bank’s oversight of US financial firms.

The Fed’s supervision staff told banks around the nation earlier this month that examiners would begin reviews of the outstanding warnings, which are private orders to fix deficiencies, according to people familiar with the matter.

Warnings will be eliminated if they don’t align with the Fed’s recent directive for examiners to concentrate more on immediate risks to a bank’s financial health ...