(Adds comments)

NEW YORK, Sept 10 (Reuters) - The Federal Reserve's

regulatory chief on Tuesday outlined a sweeping overhaul easing

two major draft bank capital rules following intense industry

opposition that delayed the projects and sparked divisions among

the top federal banking regulators.

Shares of major U.S. banks fell after Fed Vice Chair for

Supervision Michael Barr unveiled the plan for the so-called

Basel endgame bank capital hike.

Here are comments from the industry:

BANK OF AMERICA ( BAC ) CEO BRIAN MOYNIHAN (DURING THE

BARCLAYS GLOBAL FINANCIAL SERVICES FORUM)

"We're fine. We can continue to buy back stock. Now on the

other hand, you've had successive chairs of the Federal Reserve

saying the capital's right in the industry and suddenly we

needed more capital. If our capital goes up by 10%, it stops us

from making $160 billion loans we would otherwise make. Those

loans would go to small businesses and middle-market companies

at competitive rates."

CHRIS STANLEY, MOODY'S BANKING INDUSTRY PRACTICE LEAD:

"We're close to the election, which will slow progress,

but Basel Endgame and GSIB Surcharge rules will survive no

matter who wins."

STEPHEN BIGGAR, BANKING ANALYST, ARGUS RESEARCH:

"This is less than half the percent increase that was

proposed, but its disappointing to see the negative bank stock

price reaction. The Street may have been looking for a greater

reduction from the original proposal."

KEVIN FROMER, PRESIDENT, FINANCIAL SERVICES FORUM (IN A

STATEMENT):

"It is essential that capital regulations avoid unnecessary

and harmful impacts across the U.S. economy. The revisions

should comprehensively address the concerns that have been

raised by a wide range of commenters citing the likely costs on

families and businesses of all sizes. The agencies should also

provide detailed quantitative analysis and policy justification.

"We look forward to reviewing the revisions and

participating fully in the public comment process. Getting this

right is essential for the U.S. economy."

JPMORGAN CHASE ( JPM ) PRESIDENT DANIEL PINTO (DURING THE

BARCLAYS GLOBAL FINANCIAL SERVICES FORUM)

"Obviously 10 is better than 20. So that's good. The issue

is we have no idea what they have changed."

Pinto said the bank would be closely examining changes to

how the draft weighs markets risks.

CHRISTOPHER WOLFE, HEAD OF NORTH AMERICAN BANKS, FITCH

RATINGS:

"This was largely expected given the stiff pushback to the

original proposal. The big question will be around whether the

election changes anything from the new draft proposal."