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Report: BofA, Citi told to raise capital

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Results of the government's "stress tests" of the ability of 19 banks that hold more than half of U.S. loans to sustain losses through 2010 won't be made public until the week of May 4, but Citigroup Inc. and Bank of America are reportedly among those that may need to raise more capital. Citing anonymous sources, the Wall Street Journal reported that preliminary findings of the tests indicate Bank of America may need billions in capital -- a finding Bank of America is expected to appeal as early as Tuesday. Regulators are also in discussions with Citigroup, which may be able to raise any capital it needs by reworking or expanding a planned exchange of preferred shares for common stock, Reuters reported, citing unnamed sources. The Federal Reserve published some details on how the stress tests were conducted Friday, giving analysts an opportunity to run numbers for themselves and determine which banks may have to raise additional money. Matt O'Connor, a Deutsche Ba...