Bank stocks fell Tuesday on reports that at least two of the country's largest banks may be required by the government to raise more money.

The KBW Bank Index fell 2.92% after The Wall Street Journal said that Citigroup Inc. and Bank of America Corp. have been told by regulators that they may need to raise additional capital, based on the early results of their stress tests, according to sources close to the matter. B of A fell 8.6%, and Citi fell 18 cents a share, to $2.89.

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