BofA Needs $33.9 Billion

Initial reports that Bank of Amerca might need $10 billion in new capital appear to have been low-balled: The bank needs a whopping $33.9 billion according to The New York Times. “If the bank is unable to raise the capital cushion by selling assets or stock, it would have to rely on the government, which has provided $45 billion in capital through the Troubled Asset Relief Program.” What about those banks that are doing better and want to return the funds? “Banks that want to return Troubled Asset Relief Program funds will have to demonstrate their ability to wean themselves off another major federal program, according to senior government officials, making it less attractive for some banks to return the money,” reports The Wall Street Journal. The other program is the Federal Deposit Insurance Corp., which allows banks to borrow inexpensively and has lent $332.5 billion since last fall. The repayment conditions could be released as early as today.