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Tuesday, April 28, 2009

Report: BofA, Citi Told May Need to Raise Capital

by Calculated Risk on 4/28/2009 12:48:00 AM

From the WSJ: Fed Pushes Citi, BofA to Increase Capital

Regulators have told Bank of America Corp. and Citigroup Inc. that the banks may need to raise more capital ...

Executives at both banks are objecting to the preliminary findings ...

Industry analysts and investors predict that some regional banks, especially those with big portfolios of commercial real-estate loans, likely fared poorly on the stress tests. Analysts consider Regions Financial Corp., Fifth Third Bancorp and Wells Fargo & Co. to be among the leading contenders for more capital....
The article also notes that the results of the stress test could be released the week of May 4th - and not on May 4th as originally announced.

No one will believe the test results if Citi isn't required to raise more capital.