Banks may need more capital but AIG won't: reports

(MarketWatch) -- The U.S. government may order an estimated 10 banks to boost their capital levels, but beleaguered insurer American International Group Inc. won't need further help from Washington, according to media reports Monday, all citing unnamed sources.

U.S. officials are expected to direct about 10 of the 19 banks undergoing government stress tests to boost their capital, a move they hope will quell fears about the solvency of the financial sector, The Wall Street Journal reported Monday.
The exact number of banks affected remains under discussion, the report said, though possible candidates for capital-raising could include Wells Fargo & Co. , Bank of America Corp. , Citigroup Inc. and several regional banks, the report said, citing sources familiar with the matter.

At one point, officials believed as many as 14 banks would need to raise more funds to create a stronger buffer against future losses, the report said, but that number has fallen in recent days.

If multiple banks are being directed to boost their capital, that could make the process seem less daunting than if the government singled out a few companies as weak, the report said.

Meanwhile, several banks are expected to have shown themselves to hold enough capital to weather a worsening economy, including Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. , it said.

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