Fed Says Bank of America and Citi Need More Capital

by The Grubster on April 28, 2009

Here we go. According to some media reports, the fed has told both Citi and Bank of America that according to the stress test results, the banks need more capital.

According to Marketwatch: “Federal regulators in the U.S. have told Bank of America Corp. and Citigroup Inc. that the banks may need to raise more capital based on early results of the government’s so-called stress tests of lenders, according to a U.S. media report Tuesday.

Executives at both banks are objecting to the preliminary findings, which were part of the government’s scrutiny of 19 large financial institutions, the Wall Street Journal reported early Tuesday, citing people familiar with the situation. “
Let’s hope that the banks have a chance to respond.
 

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