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U.S. regulators told top banks on Thursday to raise $74.6 billion to build a capital cushion officials hope will restore faith in financial firms and set a course out of the deepest recession in decades.

The U.S. government was preparing on Thursday to draw a line separating the weak from the strong in the banking sector in an attempt to put the worst of the financial crisis behind it.

Investors braced for the release of bank stress test results that will separate the weak from the strong and force some top banks to raise billions of dollars in capital.

Citigroup Inc and Bank of America Corp shares rallied in premarket trading ahead of the release of stress test results that will force them and other top banks to raise tens of billions of dollars in capital.

A trio of top European banks showed bad debts are ratcheting up as economies worsen and unemployment rises, although investor optimism ahead of U.S. bank stress test results drove shares to year highs.

Shares are set for a mostly higher open on Thursday, ahead of the results of the stress tests for banks.

Asian shares extended their rally Thursday as encouraging signs about the health of U.S. banks and the global economy bolstered riskier assets such as oil and hurt safe-havens such as the yen.

Regulators are ordering some of the largest U.S. banks to find tens of billions of dollars of capital to cushion themselves in the event of a deep economic downturn.

A rally in Asian shares continued on Thursday as encouraging signs about the health of U.S. banks and the state of the global economy bolstered riskier assets such as oil and hurt safe-havens such as the yen.

Bank of America chief executive Ken Lewis on top federal officials will be asked by a Congressional panel to testify next month about his claims that the U.S. Treasury and Federal Reserve pressured him to close deal to acquire Merrill Lynch, a person familiar with the investigation told the Wall Street Journal.

Some of the U.S. banking giants have been ordered to find additional capital by regulators to protect themselves in the event of a severe economic downturn.

Bank of America Corp's chief executive and top federal officials will be asked by a Congressional panel to testify next month about claims that the bank was pressured by the government to complete its purchase of Merrill Lynch & Co, the Wall Street Journal reported on Wednesday, citing a person familiar with the investigation.

Bank of America Corp's chief executive and top federal officials will be asked by a Congressional panel to testify about claims that the bank was pressured by the government to complete its purchase of Merrill Lynch & Co, the Wall Street Journal reported on Wednesday, citing a person familiar with the investigation.

Fixes headline to say BofA CEO will be asked to testify: report, instead of will testify

Bank of America Corp's chief executive and top federal officials will be asked by a Congressional panel to testify about claims that the bank was pressured by the government to complete its purchase of Merrill Lynch & Co, the Wall Street Journal reported on Wednesday, citing a person familiar with the investigation.

Regulators are ordering some of the largest U.S. banks to find tens of billions of dollars of capital to cushion themselves in the event of a deep economic downturn.

U.S. stocks rose on Wednesday after a private-sector reading on the labor market signaled unemployment may be receding and leaked bank stress test results suggested most banks are healthier than previously thought.

U.S. stocks rose on Wednesday after a private sector reading on the labor market signaled unemployment may be receding and leaked bank stress test results suggested most banks are healthier than thought.

The Dow and S&P 500 rose on Wednesday, led by bank shares, after media reports suggesting some major banks, including JP Morgan Chase & Co , won't have to raise capital under government stress tests.

The Dow and S&P 500 rose more than 1 percent to session highs on Wednesday, boosted by a surge in bank stocks following media reports on stress test results that suggested bank capital shortfalls might be less than previously expected.

The Dow and S&P 500 gained on Wednesday on economic optimism spurred by a jump in bank shares as investors bet that capital shortfalls will be manageable, plus reassuring labor market data and Walt Disney's better-than-expected profit.

Regulators have told Bank of America Corp it needs $34 billion of capital to withstand a deep economic downturn, as the U.S. government prepares to release results of industrywide stress tests.

Regulators have told Bank of America Corp it needs $34 billion of capital to withstand a deep economic downturn, an industry source familiar with results of a government stress test said late on Tuesday.

Wall Street was poised for a higher open on Wednesday as encouraging signs about the job market offset renewed concern about the health of banks after a source told Reuters stress tests show Bank of America has a $34 billion capital shortfall.

Stock index futures turned positive on Wednesday after better-than-expected data on private-sector employment.

Wall Street was set for a lower open on Wednesday on renewed concern about the health of banks after a source said government stress test results show Bank of America needs as much as $34 billion in capital.

Bank of America needs $34 billion in extra cash, a source familiar with U.S. government stress tests on leading banks told Reuters, unsettling markets and stoking talk of a possible asset sale in China.

Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes were down 0.2-0.4 percent at 5:02 a.m. EDT, pointing to a lower start on Wall Street.

Futures for the Dow Jones industrial average, the Nasdaq 100 and the S&P 500 share indexes are down 0.2-0.4 percent at 5:02 a.m. EDT, pointing to a lower start on Wall Street.