Fed Tells BofA, Citi to Raise Billions

By Kevin Spak,  Newser Staff
Posted Apr 28, 2009 7:25 AM CDT
Federal Reserve Board Chairman Ben Bernanke takes part in the Federal Reserve Sixth Biennial Community Affairs Research Conference in Washington Friday, April 17, 2009.   (AP Photo/Alex Brandon)
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(Newser) – Federal Reserve regulators are urging Bank of America and Citigroup to raise more capital, based on their preliminary stress test results, sources tell the Wall Street Journal. Sources familiar with Bank of America say the shortfall numbers in the billions. But both banks are protesting, with Bank of America expected to issue a detailed appeal today.

Bank officials have complained about the tests. One senior executive griped that regulators were asking “a million questions,” poking through every corner of the organization. Originally, full stress test results were to be released May 4, but now that has been pushed back to sometime that week. Government officials stressed that any results discussed so far are preliminary, and that banks told to raise capital shouldn’t be viewed as insolvent.