Raulken co.UK - Bank of America may face $34B gap

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60? "60px": "auto" ); height:expression(do*****ent.body.clientHeight > 60? "60px": "auto" );' onload=this.style.filter='progid:DXImageTransform.Microsoft.Shadow(color=#000000,direction=135,strength=5)'>NEW YORK (CNNMoney.com) -- The U.S. government isn't due to reveal the results of its stress tests on banks until Thursday, but leaked results are painting a troubling picture.Regulators have determined that Bank of America (BAC, Fortune 500) may need roughly $34 billion in capital to weather a more painful economic environment, several reports published late Tuesday said, citing sources familiar with the results.Bank of America officials were not immediately available for comment Wednesday morning.The Charlotte, N.C.-based lender has received extensive assistance from the government to date, taking in $45 billion in taxpayer funds. Nearly half of that amount was injected into the firm earlier this year after the company realized the enormity of the losses it faced as a result of its purchase of Merrill Lynch last fall.The new reports, however, suggested that Bank of America would not necessarily need to raise $34 billion in new capital. Rather, the bank may bolster its position simply by converting the government's preferred share stake into common stock. Such a move, however, would severely dilute the bank's existing common shareholders. To offset that, Bank of America is believed to be considering the sale of certain assets, including its stake in China Construction Bank.0:00 /1:18Cleaning up the banksThe government's view that Bank of America needs to shore up its capital position is likely to add...
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