NEW YORK (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:

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."