Stress Tests

Citi, BofA Flunk Stress Test

Oh hey look at that—Citigroup and Bank of America need more money. According to Reuters, “ U.S. regulators have told Bank of America Corp and Citigroup Inc they may need to raise more capital following stress testing of the two banks.” The shortfall at Bank of America, according to people familiar with the situation, is billions of dollars, and it is expected that some of the other 17 banks that underwent stress tests will need more capital. Officials at Citi and BofA are objecting to the findings and plan to reply with detailed rebuttals.