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The system also results in gaps in oversight.
They were never active in oversight or strategy.
"There isn't a void in oversight here," she said.
After the change in oversight Bernstein amended his suit to include the Commerce Department.
Church officials and those involved in oversight say they do not know.
The bank's chief executive, Jamie Dimon, has apologised for the breakdown in oversight.
Adding to a deficit in oversight, regulators found, was turnover in Centurion bank's chief compliance officer.
Under the block grant vision of Medicaid, that federal role in oversight would end.
He said, "Congress always ought to have a serious role in oversight".
But senators are considering new provisions they say would avoid gaps in oversight and regulation.
The new position was created to address the Regents' lapses in oversight over the institution.
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