Bank Of America Shares Fall On Reports Of $34 Billion Shortfall

By: Associated Press Email
By: Associated Press Email

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Wednesday, May 6, 2009

Bank of America stock is falling in premarket trading amid reports that it needs $34 billion in new capital.

The Wall Street Journal and New York Times are reporting regulators are telling the Charlotte, N.C.-based bank it needs about $34 billion in capital based on results of government "stress tests." Both reports cite anonymous sources.

The need for more capital comes as the government gets set to release the results of its stress test on 19 banks to determine how they would fare if economic conditions worsened.

Bank of America has been among the hardest hit banks by the credit crisis and ongoing recession. It has received more than $45 billion in government aid already.

Shares of Bank of America fell 56 cents, or 5.2%, to $10.28.

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