Fin Reform Hit Could Be Less Than Originally Anticipated

The consensus about how large of a hit the big banks on Wall Street will take as a result of financial reform is shrinking from the original projections, according to FOX Business Network's Charles Gasparino who has spoken with several top executives at the firms.

JPMorgan Chase & Co. (NYSE: JPM) Chief Executive Officer Jamie Dimon said that with some luck his firm can reduce the earnings hit to a little less than 10 percent, according to the report.

"The lower loss projections stemming from the legislation is a function of several factors, say senior people at the large banks," Gasparino wrote. "A plan to raise a bank tax appears to have hit a snag and likely won't make the final bill, and top executives believe there is now enough wiggle room in the 'Volcker Rule' so they can continue to take risk trading and maintain their holdings in hedge funds and private equity."

Gasparino also reported that several other big banks have received assurances from federal regulators that they will not be "disproportionately impacted" by the costs of the new regulations. This will ensure that the domestic banks will not be put at a disadvantage compared to foreign banks.

The report showed that the banks, which had projected costs to be in the range of 10 percent to 20 percent of earnings, have come down to be 5 percent to 10 percent.

Goldman Sachs Group Inc. (NYSE: GS) see it impossible currently to total the cost of the bill at this time.

"People at Goldman have determined that no one really knows what the bill might cost," said one senior banking official told FOX Business.

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