<p>Bank of America Corp and Citigroup will raise additional capital to the tune of $34 billion and $5-$10 respectively, said sources close to the development. <br /><br />According to the results of a government stress -test, Bank of America Corp need $34 billion in additional capital. A possible shortfall is certain to increase pressure on CEO Kenneth Lewis, who was last week ousted by shareholders as Chairman of the biggest US bank. <br /><br />It may also unnerve investors who had hoped the results of the stress-tests on Bank of America and 18 other banks might show the industry was in a less dire condition than had been feared. <br /><br />Bank of America has been at the top of the list of those believed to need more capital, as it faces significant credit losses and a controversial takeover of Merrill Lynch & Co, which closed on January 1. The $34 billion figure more than triples previously published reports of Bank of America’s capital needs. <br /><br />Citigroup Inc may have to raise $5-$10 billion in new capital to meet a US government requirement that it holds up to $55 billion in capital, the New York Times said.<br /><br />Citigroup is expected to need to raise capital as insurance against any further downturn in the economy. <br /><br />The New York bank can easily cover any shortfall and is considering several options to close that gap, the paper cited Citigroup executives as saying.</p>
<p>Bank of America Corp and Citigroup will raise additional capital to the tune of $34 billion and $5-$10 respectively, said sources close to the development. <br /><br />According to the results of a government stress -test, Bank of America Corp need $34 billion in additional capital. A possible shortfall is certain to increase pressure on CEO Kenneth Lewis, who was last week ousted by shareholders as Chairman of the biggest US bank. <br /><br />It may also unnerve investors who had hoped the results of the stress-tests on Bank of America and 18 other banks might show the industry was in a less dire condition than had been feared. <br /><br />Bank of America has been at the top of the list of those believed to need more capital, as it faces significant credit losses and a controversial takeover of Merrill Lynch & Co, which closed on January 1. The $34 billion figure more than triples previously published reports of Bank of America’s capital needs. <br /><br />Citigroup Inc may have to raise $5-$10 billion in new capital to meet a US government requirement that it holds up to $55 billion in capital, the New York Times said.<br /><br />Citigroup is expected to need to raise capital as insurance against any further downturn in the economy. <br /><br />The New York bank can easily cover any shortfall and is considering several options to close that gap, the paper cited Citigroup executives as saying.</p>