The timing couldn't have been worse. As angry shareholders were preparing to convene, the news trickled out: Bank of America's stress results were not great, requiring billions more in capital. But how much more? An early estimate comes from Freidman, Billings, Ramsey analysts, who reckon the bank may need up to $70 billion more, Bloomberg reports. 

The bank, of course, sold $45 billion of preferred stock to the Treasury's bank rescue fund. Most assume that that stake will be converted to common, which would really hit current shareholders. But what other choice is there. I doubt it could raise much via a common offering. The public will not likely stand for more taxpayer money being put into the bank. The only option is to massively dilute the current shareholders. The question remains: Will additional steps be warranted? 

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