It is worth considering, however, whether the reputation of large banks would be enhanced by a belief that “regulatory capture” and other manifestations of ineffective supervision could be minimized.
5  See Board of Governors of the Federal Reserve System, Division of Banking Supervision and Regulation (1995), “Rating the Adequacy of Risk Management Processes and Internal Controls at State Member Banks and Bank Holding Companies,” Supervision and Regulation Letter 95-51 (SUP) (November 14).