Bank of America to need $34 bln in capital-source

[UpInArms]

Source: Reuters

WASHINGTON, May 5 (Reuters) - Bank of America (BAC.N) has been deemed to need an additional $34 billion in capital, according to the results of a government stress test, a source familiar with the results said on Tuesday.

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The amount is far higher than published reports had speculated the largest bank might need. It is certain to increase the pressure on Chief Executive Kenneth Lewis, whom shareholders ousted as chairman last week.

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The $34 billion figure more than triples previously published reports of Bank of America's capital needs.

The bank's shareholders voted to oust Lewis last week as chairman of the board, possibly laying the groundwork for his eventual departure from the company.

The bank has already received $45 billion in capital from the federal government.

Read more: http://www.reuters.com/article/bondsNews/idUSN0552030420090506