NEW YORK ( TheStreet) -- We've known for a while that the proposed new restrictions on hedge fund and private equity investing known as the "Volcker Rule," would be tougher on Goldman Sachs ( GS) than any other large bank, but have we really considered the extent to which this is true? Assessing the impact of the restrictions is difficult. Citigroup analyst Keith Horowitz reckons Goldman has $29.1 billion invested as a so-called "principal"-- where it is acting in much the same way as a hedge fund or private equity firm would. That compares to $11.6 billion for Bank of America ( BAC), $7.3 billion for JPMorgan Chase ( JPM) and $8.1 billion for Morgan Stanley ( MS). In other words, Goldman's "principal" investments count for nearly three times the total of Bank of America, and about four times that of JPMorgan. The difference is even greater when you take into account that those institutions are significantly larger than Goldman. Under the proposed legislation before Congress, Goldman and other banks would need to cut their principal investment to no more than 3% of Tier 1 Capital -- a number regulators use to measure the strength of an institution to withstand big losses. Since Goldman's Tier 1 capital was $65 billion at the end of 2009, Goldman would have to cut its principal investing from $29.1 billion to less than $2 billion. By contrast, JPMorgan would merely need to bring its $7.3 billion investment down to $4 billion to account for the 3% of the $133 billion in Tier 1 capital it had at the end of 2009. Is there any way the Volcker rule might be good for Goldman? Well, one of the restrictions of the rule would prevent Goldman's executives from investing their own money in its proprietary funds. This eliminates an important conflict. For example, imagine a Goldman investment banker hears about a company that he or she thinks may be for sale at a relative bargain price. If that person has $5 million of their own money in Goldman's private equity fund, they might tell colleagues at the fund about the potential deal before telling, say, The Blackstone Group ( BX) or Kohlberg Kravis & Roberts. Today, if the investment does well, Goldman's private equity fund makes money, but it loses out on an advisory fee. In 12 years, after the proposed law would kick in, Goldman will lose the investment opportunity, but win the fee.