Will regulation cut investment banking profits by a third?

A JPMorgan Chase (JPM) analyst believes that regulation of the investment banking industry could cut its profits by a third. As a result, he thinks investors should dump their shares of investment banks and buy those of traditional commercial banks.

I'm not sure how this analyst, Kian Abouhossein, reached his conclusions, which are included in a JPMorgan study released Wednesday, but I think he grossly underestimates the power of those investment banks to influence regulation and find their way around it to make more money for themselves.