Ten big US banks may need more funds: report

I / Washington May 5, 2009, 15:48 IST

Ten of the country's 19 biggest banks subject to US government "stress tests" to measure their financial stability may need to raise more capital, the Wall Street Journal said today.     

The exact number of banks required to raise more funds has not yet been decided, the financial daily said, but those affected could include banking giants Wells Fargo, Bank of America and Citigroup.     

The number of banks thought to need more funds had been 14 out of 19 at one point, the Journal said, citing sources familiar with the matter.     

US banking regulators and the Federal Reserve are set to release results Thursday from stress tests of the 19 banks and estimates for further public aid to help boost the ailing economy.     

The tests will cap a period of suspense that began when President Barack Obama's administration unveiled in February its overhaul of the bank bailout in a bid to restore stability to the financial system of the world's largest economy.     

Fears surrounding Wells Fargo, Bank of America and Citigroup may have subsided, however, in light of the authorities' stress test efforts, the Journal said, noting that the three bank's stock prices have tripled since early March.