US Regulators Ask Citi, BOA To Raise More Capital

US Regulators Ask Citi, BOA To Raise More Capital

http://online.wsj.com/article/SB124088901025362487.html

Keeping in mind the results of the stress tests conducted on 19 US banks, the regulators have asked Banc of America and Citigroup that the two may need to raise more capital, government sources have revealed. The two banks are, however, objecting to the preliminary findings of the stress tests. Several other banks including regional banks with high exposure to commercial real estate loans may be asked to raise more capital in the near future. Regulators have said that they will hold detailed discussions about the findings of the stress tests with the individual banks and that banks being asked to raise more capital are not insolvent. The additional capital is required to cushion against any potential losses in case of future problems. The Obama administration has already said it will not let any of the 19 banks fail.