Large institutions likely would be hit hard by financial-reform legislation, with Citigroup, Bank of America and Morgan Stanley possibly seeing earnings decline 13% to 14%, analysts said. "This bill will likely have a significant negative impact on the banking industry's earnings through fee reductions, higher costs (both regulatory and implementation), and new restrictions, in addition to tying up capital," Jason Goldberg, a banking analyst at Barclays Capital, wrote in a note to clients.

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