Stress Tests: Fed Is Said to Seek Capital for At Least Six Banks

05/30/2009 05:12 am ET | Updated May 25, 2011
  • Robert Schmidt and Rebecca Christie bloomberg.com

At least six of the 19 largest U.S. banks require additional capital, according to preliminary results of government stress tests, people briefed on the matter said.

While some of the lenders may need extra cash injections from the government, most of the capital is likely to come from converting preferred shares to common equity, the people said. The Federal Reserve is now hearing appeals from banks, including Citigroup Inc. and Bank of America Corp., that regulators have determined need more of a cushion against losses, they added.

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