US regulators have determined that Bank of America has the greatest need for new capital among the 19 biggest US banks that underwent stress tests – possibly about $31bn, reports Bloomberg. Citigroup’s shortfall is more limited as the group already plans to convert government preferred shares to common stock, while JPMorgan Chase doesn’t need a deeper reserve against losses. The banks may outline their capital strategies after test results are published on Thursday.

This entry was posted by Gwen Robinson on Wednesday, May 6th, 2009 at 5:20 and is filed under Capital markets. Tagged with BofA, citi, jpmorgan. Edit this entry.