Bank of America may need $34 billion in new capital

The news reports about the "stress test" results for Bank of America (BAC) are not consistent, but most say that the firm will be asked to raise $30 billion to $35 billion in new capital. [Update: most media outlets now report $34 billion.]

The bank may sell its stake in China Construction Bank for as much as $8 billion, but the balance of the infusion will have to come from private sources unless B of A wants to face a much larger investment from the government. The bank could also convert the government's preferred shares into common stock, but the net effect is that the firm might lose its independence.