WASHINGTON, America- Bank of America said Thursday it would meet regulator demands to raise 33.9 billion dollars (S$49,938,090,000) in capital through sales of assets and other actions that allows it to repay the US Treasury.

The statement came after the release of "stress tests" showing Bank of America need 33.9 billion dollars in core capital as a buffer in the event of a weaker economy.

Bank of America said it "intends to sell common stock and/or convert existing privately held preferred stock into common shares" to meet the requirement for core capital.

Bank of America has already announced it will sell First Republic Bank "and is considering the sale of several other business units including Columbia Management," the statement said. "It may also consider several joint ventures."

"Our intention will be to reach the government's target on our own without exchanging any of the current US investment in Bank of America into mandatory convertible preferred stock," said Joe Price, chief financial officer.

"That would allow us to minimize the use of government money and put us into a position to repay the government's investment sooner."

"We are comfortable with our current capital position in the present economic environment," said chief executive Kenneth Lewis.

"The stress test asks what if the economy does much worse than most experts project. We are working on a plan to submit to the government for such a contingency, which is due by June 8."

Lewis said his bank would not need any new government money. The plan will be implemented by the November 9 deadline. -AFP