Financial Winners and Losers: Citigroup

Updated from 1:49 p.m. EDT

Bank stocks finished higher on a flurry of news for the financial sector, including positive comments from billionaire investor Warren Buffett and reports that Citigroup (C Quote) and Bank of America (BAC Quote) are seeking new capital.

During the annual shareholder meeting for Berkshire Hathaway (BRK-A Quote) over the weekend, Buffett criticized the Obama administration for the government's stress tests on the 19 largest U.S. banks. During Berkshire's annual shareholder meeting over the weekend, Buffett said that 15 of 19 banks facing the stress tests are not too big to fail.

Buffett said that Wells Fargo (WFC Quote), U.S. Bancorp (USB Quote), and M&T Bank (MTB Quote) do not need additional equity. Berkshire owns large stakes in all three names.

Originally, the results of the government's stress tests were scheduled to be released on Monday, but they have been delayed until Thursday afternoon.

The Financial Times reported that Citigroup and Bank of America are working to raise $10 billion each in new capital in order to convince the government they do not need additional equity to boost their balance sheets.

Bloomberg reported that Citigroup is looking to raise any additional capital it might need from private investors, rather than accepting more money from the government. Citigroup has already received billions in taxpayer money, and one person familiar with the matter told Bloomberg that the bank does not want to give more control to the government.

Bank of America, meanwhile, denied an article in The Financial Times, saying it is not working on plans to raise $10 billion in common equity. A spokesperson told Reuters that the Federal Reserve has not given the bank a final figure for required capital after the stress test.