Citi, BofA May Need to Increase capital

Published on April 28, 2009

Citi, BofA May Need to Increase capital

April 28, 2009

According to Wall Street Journal, U.S. regulators told Citigroup Inc and Bank of America Corp they may need to raise more capital. The shortfall in capital amounts to billions of dollars at BofA, the paper said, citing people familiar with the bank.

Both banks, whose officials are objecting to the preliminary findings of the tests, plan to respond with detailed rebuttals, the people told the paper, adding BofA’s appeal is expected by Tuesday. It is likely that Citigroup and BofA are not the only banks that the Federal Reserve has determined might need more capital, the paper said.

Expect more volatility in the markets.

Profitable Trading, OP

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