What does this new regulation mean for the future of the banking industry?

In Washington a new legislative change is making its way into law. The question (as with many new laws) is going to be- What will the impact be on the markets and the financial services industry.It’s hard to argue the need to revisit the current set of laws that exist in the world today. But the larger more looming consideration is- at what cost and to what benefit? The last couple of years have translated for many into a loss of respect and trust for the banking services industry. It has certainly created a feeling of big guy vs. the small guy unlike what we have seen for over a generation. The failure exists not only with the industry but with our government in creating false markets that will ultimately fail. Any time we create false demand we create a market that someone will step into and provide supply. That only lasts for so long before it comes tumbling back to the forces of supply and demand. This new legislative change could mark the dawn of a new day for the industry or catalogue the day that it no longer exists. To quote Chris Dodd (chairman of the Senate Banking Committee) "No one will know until this is actually in place how it works. But we believe we've done something that has been needed for a long time. It took a crisis to bring us to the point where we could actually get this job done." Only time will tell?