JPMorgan (JPM) Says (BAC) (C) (MS) (GS) Harmed by Dodd-Frank

A JPMorgan (JPM) report by its British investment bank in London, JPMorgan Cazenove, says American banks such as Bank of America (NYSE:BAC), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) will be those most negatively impacted by the new banking regulations, giving their European counterparts a definite competitive advantage.

European Banks are certain to swoop in and steal business from the American financial institutions, as the rules only apply to banks operating within American borders.

Those foreign banks with subsidiaries in the U.S. will in most cases be subject to the new rules.

Nonetheless, overall, the giant banks of Europe, especially those operating in Germany, France and Britain, will be the beneficiaries of the rules, and are expected to boost market share at the expense of the American banks.

Specific rules that will generate the opportunities from Dodd-Frank include those that require banks to spin off some derivatives business, stop proprietary trading and wind down their investments in hedge funds.

Deutsche Bank (NYSE:DB) and Barclays (NYSE:BCS) are considered two that will benefit from the new rules.