As always, these views are my own and not necessarily those of the Federal Reserve Board or my colleagues on the Federal Open Market Committee. 2  See Dotsey and Plosser (2012) and Plosser (2008).
The disclosure of deficient business and governance practices can then lead to lower share prices, the likelihood of potential shareholder lawsuits and enforcement actions, the loss of credibility and damage to a bank’s reputation, and the payment of higher spreads to access capital markets.