Bank of America Said to Need About $34 Billion in New Capital

[Subdivisions]

Regulators have determined that Bank of America Corp. requires about $34 billion in new capital, the largest need among the 19 biggest U.S. banks subjected to stress tests, according to a person familiar with the matter.

Citigroup Inc.’s shortfall is more limited because the company already plans to convert government preferred shares to common stock, people familiar with the results said. JPMorgan Chase & Co. doesn’t need a deeper reserve against losses, according to people familiar with that company’s result.

The banks may outline their strategies to add capital, or in other cases buy out government stakes, after the Federal Reserve publishes the stress tests results tomorrow. Firms requiring more capital could raise all the funds through conversions of preferred shares if they choose, according to people familiar with the matter.

“To the extent that there are banks that need capital, our hope is that many of them will be able to raise that capital through either private equity offers or through conversions and exchanges of existing liabilities,” Federal Reserve Chairman Ben S. Bernanke told lawmakers at a hearing in Washington yesterday. “The data we have are accurate reflections of the financial conditions of those banks.”

-snip-

http://www.bloomberg.com/apps/news?pid=20601087&sid=aA5X3dkyymvw&refer=home">MORE from Bloomberg.com

How much taxpayer money is left in the TARP fund anyways? Hmmmm...

[ShortnFiery]

1. Uh, NO!

:thumbsdown:

[leftstreet]

2. IT WILL TRICKLE DOWN!! IT WILL TRICKLE DOWN!!111

Don't worry, be Happy!

[msongs]

3. let them issue new stock on the open market to get some $$$ nt

[rpannier]

4. BofA doen't need TARP money

They'll just raise the rates on their c/c again

[aquart]

5. Oddly enough, so do I.

[AtomicKitten]

6. Just closed my accounts with them today.

I had a strong urge to spray-paint a nastygram on the side of their building.

[ima_sinnic]

7. fuck them. they need $$ b/c customers have run screaming from them.

fucking greed-heads can go to hell. they've been gouging We The People with fees, sending--how many?-- to their local credit unions for years now. hell, we've had more than a few DUers posting their intentions to drop BoA and join a credit union. I dropped them like a hot potato years ago when they killed me with fees, and the difference between them and the credit union to which I now belong is like night and day.

[provis99]

8. for $34 billion we could give 1 million unemployed the median wage for a year

$32390 to 1 million people, versus throwing $34 billion into the Bank of America sewer. Why is the country obsessed with giving government money to rich people and corporations?

[MannyGoldstein]

9. So What?

They're not bankers; why waste the cash?

Perhaps we could use these people who choose to not work as kindling for banker weenie roasts instead?

[leveymg]

10. Why is nobody else pointing that out?

But, giving away public funds would be socialism, wouldn't it?