Seven Banks Told to Increase Capital: Report

The Federal Reserve has told at least seven of the nation's biggest banks to increase their capital levels, while another six won't be told to raise additional capital, a report says.

Regulators have told Bank of America(BAC) it must take steps to address a roughly $34 billion capital shortfall, according to the Wall Street Journal, while Wells Fargo (WFC) needs $13 billion to $15 billion. The Journal reports GMAC needs $11.5 billion; Citigroup(C), $5 billion; and Morgan Stanley(MS), $1.5 billion.

Regions Financial(RF) and State Street(STT) also need more capital, the newspaper reports.

These financial institutions, of a total of 19, won't be told to raise additional capital, the Journal reports: JPMorgan Chase(JPM), Goldman Sachs(GS), MetLife(MET), American Express(AXP), Bank of New York Mellon(BK) and Capital One Financial(COF). The Journal story cited people familiar with the matter.

Results for the remaining six banks couldn't be learned, but analysts and investors expect several of them to face sizable capital holes, the Journal notes.

Final results of the government's stress will be released after the close of trading Thursday.

Any bank needing more capital will have until June 8 to develop a plan and must implement it by Nov. 9, the Journal reports.

Bank of America will outline its strategy Thursday, according to people familiar with the matter, the Journal reports. The bank says it doesn't need government capital and that it has a number of options.

>To order reprints of this article, click here: Reprints