A spoonful of sugar may make the medicine go down, as Mary Poppins said/sang. But, when it comes to reform, regulators really don’t care whether the banks choke on their new rules.

Not content with bludgeoning banks into submission with a barrage of regulatory reform over the past five years, policymakers are wreaking havoc with the economics of investment banking. But, in time, maybe even the investment banks and their staff will come to accept that the medicine is good for them. Eventually, a leaner, more competitive and healthier industry will emerge.