May 4, 2009 in Business

Wells Fargo asked to raise money after stress test

Associated Press
 

WASHINGTON — Regulators are asking Wells Fargo & Co. to raise more capital after government “stress tests” showed the bank would have trouble surviving if the recession worsens.

Wells Fargo is one of several banks that regulators will force to boost their buffers against losses when results of the tests are announced Thursday, according to two people familiar with the matter who spoke on condition of anonymity because of the sensitivity of the process.

San Francisco-based Wells Fargo is trying to dissuade regulators from forcing it to raise capital, these people say. The government will brief banks Tuesday on its final decisions about their appeals.

Bank of America Corp. and Citigroup Inc. also will be asked to raise money, sources have told The Associated Press.

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