Large U.S. banks are sitting on an estimated $175 billion in excess capital after the Federal Reserve relaxed post-2008 crisis liquidity requirements. Large U.S. banks are preparing to deploy billions in accumulated capital after federal regulators eased key post-2008 crisis requirements, freeing up funds that have sat idle for years. Industry executives say the move will accelerate lending, fund acquisitions and boost shareholder returns. The Federal Reserve and other banking agencies finalized changes last week to the supplementary leverage ratio and other liquidity requirements that have constrained bank balance sheets since the financial crisis. Analysts estimate the largest lenders now hold roughly $175 billion in excess capital beyond regulatory minimums. The excess capital has been a point of tension between Wall Street and Washington for years. Banks argued that post-crisis rules forced them to hold more capital than necessary, limiting their ability to lend and compete with less-regulated rivals. Regulators defended the requirements as essential safeguards after 2008. The new framework raises the threshold at which the supplementary leverage ratio applies, effectively...