Stress tests by the regulatory authorities have revealed that Bank of America, owners since the start of the year of Merrill Lynch with its substantial wealth management units, needs about $34 billion in new capital, the most among the 19 largest US banks tested, according to a Bloomberg report citing people familiar with the matter.

Citigroup’s need is said to be less because the company already plans to convert government preferred shares to common stock. JP Morgan has no requirement for a larger reserve.

Banks can state their plans to add capital or buy out government stakes as soon as the Federal Reserve publishes the stress tests results, expected on Thursday.

Federal Reserve chairman Ben Bernanke is reported as telling a hearing in Washington: β€œTo the extent that there are banks that need capital, our hope is that many of them will be able to raise that capital through either private equity offers or through conversions and exchanges of existing liabilities. The data we have are accurate reflections of the financial conditions of those banks.”