Apparently the stress test didn't go well for Bank of America. The bank needs some $34 billion or so to shore up its ailing capital position. The Wall Street Journal, citing people familiar with the situation, said that an official announcement is expected Thursday after the market closes.
From the Journal:
At Bank of America, the government's findings are likely to set off a scramble over how to fill the capital hole at the nation's largest bank in assets.
The Charlotte, N.C., bank already has received $45 billion in capital from the federal government, some of it to help the bank cover losses stemming from its purchase of securities firm Merrill Lynch & Co. in January.
The amount of capital now needed by Bank of America could exceed what the bank can raise by selling assets or more shares to the public.
As a result, the bank may have no choice but to convert the government's preferred shares into common stock.
Read the rest of the story here.