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US: Bank of America Needs $34B

HeadlineMay 06, 2009

In financial news, a government assessment of the nation’s top banks has found Bank of America needs an additional $34 billion in capital. The amount is triple previous estimates of what the government’s “stress test” was expected to recommend. The finding could result in US taxpayers becoming Bank of America’s largest shareholder. Bank of America could raise the needed capital by taking the government’s existing $45 billion in non-voting preferred shares under the Wall Street bailout and converting it into common stock. Government officials are also expected to instruct the bailed-out financial giant Citigroup to raise an additional $5 to $10 billion in capital. The full stress test results will be announced on Thursday.

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