FAA OVERSIGHT
On this issue or lack of FAA oversight, it is important to remember that in general the manufacturer and good airlines have generally had higher standards than the regulator. Now I agree that there seems to be evidence that Boeing have dropped the ball here and moving HQ to Chicago was a defining moment.
But when I flew test flights at Boeing over many years on 737-400/ 757. / 767. /744 The Boeing company showed nothing but the highest regard for errors we would pick up and they would be fixed right away and the production line amended if necessary.
That was then - 1988 -2003 and yes, things seem to have changed , which if so, is massively regrettable.
In UK the CAA was our regulator and generally the company I flew for knew far more about the job of flying safely than the regulator for the obvious reason that we were all active training managers/pilots flying hundreds of hours per annum and setting the bar really high, while the regulators were generally retired pilots from a variety of airlines and different former types, with little recency (a few times per year was common). We also took the CAA requirements as a minimum standard and aimed far higher than that. As the man said "if you think safety is expensive, try having an accident or two!" So true as we now see with Boeing and two MAX down.
Now that only works of course if the company is setting standards way higher than those actually required as a minimum. If you become a rogue company or just simply, like some start-ups, completely ignorant of how to operate safely, then the regulator becomes your fallback. And that is very bad indeed because it assumes that the regulator is right up there with the best. And we see where our financial regulators got us in 2007-1010.
The worst case then is a poor airline being regulated by a poor regulator.
So the idea of the FAA delegating certain roles to the manufacture is not intrinsically flawed because it has always been there and worked. I have to agree with those here who say that the standards we are seeing do not appear to support a continuation of that sort of relationship and a lot has to change.
The regulator needs to get regulating and the company has to raise its own bar. Between the two, we achieve the best possible outcome.
R Guy