There have been lots of regulatory proposals (regulatory news) thrown around recently, and some of them--the Volcker Rule and the transaction tax, for example--have spooked the industry.

JPMorgan Chase (JPM) has come forward with a new report that aims to quantify the effect of all these proposed regulations. It calculates that the industry's return on equity will drop by almost 8 percentage points, from 13.3 percent to 5.4 percent by the end of next year. That's $110 billion in profit shaved from the industry.

The result will be higher prices. To be sure, not all the regulations will be passed. And the bank does give weight to the view that more stringent capital requirements and a resolution process would be a good thing in designing a system in which too-big-to-fail is no longer a problem. This may be emerging as a less draconian solution, and the Administration has begun pushing for it.

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