by Laura Conaway

As it prepares to release the results of its stress tests tomorrow, the government has told Bank of America it needs $33.9 billion more in capital — money it could either raise privately or derive from converting the preferred shares Uncle Sam holds now into common voting stock. Citigroup's reportedly on the hook for about $10 billion — the smaller number comes in part because Citigroup already plans to swap the stock around. Reuters says the deals not done yet:

Citigroup may need less if regulators accept its arguments about its financial health.

Earlier this week, Brad DeLong won the prize for clarity on that point:

The banks should not be negotiating with the government over this.