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Report: BoA, Citi May Need More Cash

4965813Bank of America and Citigroup may need additional cash infusions based on the results of their government-imposed stress tests, according to a Wall Street Journal report Tuesday.

Federal regulators have told the banks that preliminary findings indicate they might need to raise additional capital to buffer their businesses from further losses. Bank of America alone might require billions more, according to sources familiar with the bank.

Executives at the banks, which have already received $90 billion in taxpayer assistance, object to the initial findings and plan a rebuttal, sources told the Journal. Banks have until this week to lodge formal appeals of the test results with regulators.

Government officials caution that any requirement for additional cash does not necessarily mean the banks are insolvent.

Any banks in need of more cash will have six months to raise it and could look to private investors, other banks or taxpayers for the money.

The government is set to release the stress test results next week.