US regulators are reported to have told Bank of America that it needs as much $34 billion in new capital. This has added to market worries over US bank 'stress tests'.
The Reuters news agency quoted a source as saying that the unprecedented tests on 19 lenders had concluded that Bank of America needed new capital worth around half its current market value of $69.4 billion.
The global recession was triggered by a crisis in the financial sector and US regulators have been poring over the holdings of the 19 largest US banks to determine if they have enough capital to withstand further shocks.
Bank of America, which has already received $45 billion in public funds, had been at the top of analysts' lists of those believed to need more capital, as it faces significant credit losses and a controversial takeover of Merrill Lynch.
Citigroup's capital shortfall was expected to be more limited, with the New York Times reporting the stress test results would see it needing to raise $5-10 billion.
Banks found to need capital could convert preferred shares, raise fresh private capital or seek US government help.
