Money managers affiliated with banks admitting they violated U.S. securities, banking and other laws could find it hard to get the necessary permission from regulators to continue running the more than $1.3 trillion they oversee.

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That is a good sign, said Stephen Hall, a securities specialist with Better Markets, a non-partisan non-profit organization in Washington. “We are hopeful that there will be fundamental change. It should be much more rigorously applied. Don’t always deny it, but certainly don’t always grant it. (The banks) should at least lose some privileges.”

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Read the full Pensions&Investment article by Hazel Bradford here.