They have made it quite clear they have reached the end of the heavy investment in investment banking. I'm cautiously optimistic about their earnings.

I look at my forecast and, frankly, I was off by $180 million on their investment-banking side. M&A did extremely well.

Today's package actually tells players to put away any major investment plans and rely on regulation instead.

It's a terrific move. It creates two businesses, each focused on their own area, and two investment vehicles that are more closely aligned with the kind of performance that investors are looking for.

They really have built a very impressive investment-banking capability. They won't always be No.1, but they clearly have been effective in merging their investment and commercial banks.

It's a good investment if most of them choose to stay on.