There's a lot of worry about how the financial reform legislation will ultimately impact the top banks. Most assume that the big boys will be pressured. Many further assume that Goldman Sachs (NYSE: GS) will be hardest hit because of its proprietary trading and principal investing activity. But Goldman Sachs insiders are telling people that JPMorgan Chase (NYSE: JPM) will be even harder hit.

Reports FOX Business, "The problem for JPMorgan is that as a commercial bank, its capital requirement might be tougher. Case in point: If banks are forced to spin-off their derivatives businesses known as ‘swaps' into a separate unit, JPMorgan under current rules might be forced to hold more capital than Goldman Sachs."

What's more, JPMorgan Chase is a massive operator of alternative investments via its Highbridge Capital unit, which some say is the biggest hedge fund firm in the industry. It may have to spin this off or at least better capitalize it. In addition, Goldman Sachs doesn't have a retail commercial bank, so it largely will escape some of the reform provisions--in the area of consumer credit and debit, for example--which will be tough on JPMorgan Chase.

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