Banks Need Billions More

Regulators have told Bank of America Corp it needs $34 billion of capital to withstand a deep economic downturn, an industry source familiar with results of a government stress test said late on Tuesday.

[efoods]Citigroup Inc may need as much as $10 billion, a person familiar with the matter said this week. About 10 of the 19 big U.S. banks being stress-tested may need more capital, a person familiar with the official talks has said.

The sources were not authorized to speak because the stress test results have not yet been made public. Results are due late Thursday.

Early results of the tests may unnerve investors who had hoped they might show the industry was in less dire condition than feared.

Bank of America’s test results are also certain to increase pressure on Chief Executive Kenneth Lewis, who was ousted as chairman last week in a shareholder vote. That ouster could also lay the groundwork for his departure from the company he has served for 40 years, including the last eight as CEO.

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