Bank of America Corp is working on plans to raise more than $10 billion in fresh capital, even as it and Citigroup Inc launch last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets, the Financial Times reported.

Citing people close to the situation, the paper said that Citi, Bank of America and at least two other lenders will on Monday attempt to convince the U.S. Treasury and Federal Reserve that the findings of stress tests into their financial health were too pessimistic.

Bank of America, which has had $45 billion in government aid, was found to need well in excess of $10 billion, the Financial Times reported on its website on Sunday, citing sources.

Regional lenders Wells Fargo and PNC Financial
were also among the banks that would need to raise more capital unless they could persuade the authorities their findings were wrong, the paper reported, citing people close to the situation.

Nineteen U.S. banks are undergoing a stress test, designed to ensure these institutions have enough capital to withstand the recession. Banks received preliminary results of the test last week, and many are now negotiating with the Fed over whether they have enough tangible common equity, a measure of capital strength.

Analysts believe the government will say all 19 banks are solvent when the results are announced on May 7, but that some banks need to raise more capital than others to cushion themselves if the recession worsens.

Citi and Bank of America are the likeliest to need more capital, analysts have said.

The Wall Street Journal earlier reported that Citi may need to raise as much as $10 billion.

Bank of America officials were not immediately available to comment on the report.

A Fed spokesperson declined to comment on the FT report.

(Reporting by Anupreeta Das and Mark Felsenthal; Editing by Richard Chang)