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[artmaniac]

Bank of America Needs $36.6 Billion in Capital, Oppenheimer Says
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.lt0wXZEDQs&refer=home

Bank of America Corp., the largest U.S. bank, will need to raise $36.6 billion in equity to bring its capital ratios in line with other big U.S. lenders, Oppenheimer & Co. said in a report today.

Given reluctance of investors to buy common shares of lenders, Bank of America is more likely to raise capital by converting preferred stock to common shares or issuing 5.2 billion shares through the Treasury Department’s Capital Assistance Plan, Chris Kotowski, an analyst at Oppenheimer, said in the report. Under the Treasury program, Bank of America may issue shares for $6.24 each, the report said.

The report cut quarterly earnings estimates for Bank of America as well as JPMorgan Chase & Co. and Morgan Stanley, and raised the estimate for Goldman Sach Group Inc.

To contact the reporter on this story: David Mildenberg in Charlotte at [e-mail]