Banking majors Citigroup and Bank of America (BofA) are working on plans to raise more than $10 billion each in fresh capital to assert their capability for strengthening their balance sheets, a media report said.
"Citigroup and Bank of America are working on plans to raise more than $10 billion each in fresh capital, even as they launch last-ditch attempts to convince the US government they do not need to bolster their balance sheets," the Financial Times said.
Citing people close to the situation, FT said Citi, BofA and at least two other lenders would today try to convince the Treasury and the Federal Reserve that the findings of "stress tests" into their financial health were too pessimistic.
The government would present the final test results of the stress test conducted by Fed and the Treasury to assess the health of the country's leading 19 banks tomorrow with an announcement slated for Thursday.
Quoting people familiar with the matter the newspaper said, "Preliminary findings have revealed that Citi, already been bailed out three times, could need an extra $10 billion or more if the economy worsens. BofA, which has had $45 billion in government aid, was found to need well in excess of $10 billion."