Citigroup and Bank of America are working on plans to raise more than $10bn each in fresh capital, even as they launch last-ditch attempts to persuade the US government they do not need to bolster their balance sheets.
People close to the situation said Citi, BofA and at least two other lenders will today attempt to persuade the Treasury and the Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.
But with time running out – the government will present the final test results to 19 banks tomorrow with an announcement slated for Thursday – both Citi and BofA are looking at how they could raise extra capital.