Financial Times FT.com

Bank objections delay stress tests

By Francesco Guerrera in New York and Sarah O’Connor in Washington

Published: May 1 2009 20:15 | Last updated: May 2 2009 02:44

US regulators will delay the release of stress test results for the country’s 19 biggest banks until next Thursday, after some lenders, including Citigroup and Bank of America, objected to government demands that they needed to raise billions in fresh capital.

Citi, one of the biggest victims of the crisis that has already been bailed out three times by the government, is believed to have been told by regulators that it needs more than $5bn in fresh capital, while BofA might need to convert $45bn in government preferred shares into common equity.

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