Fed to Cut Biggest Banks’ Capital Hike by Half in Overhaul (3)

US regulators will make extensive changes to their bank-capital rules proposal, cutting the expected impact to the largest banks by half and exempting smaller lenders from large portions of the measure, a top Federal Reserve official said.

The proposed revisions previewed Tuesday by Fed Vice Chair for Supervision Michael Barr would roughly slice in half the 19% capital hike that regulators had planned for the eight biggest US banks. Those lenders, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., would now face a 9% increase in the capital they must hold as a cushion against ...