In the past two weeks, Bank of America Corp.'s Kenneth D. Lewis has survived rampant rumors of the bank's nationalization and his own demise, but his greatest challenges lie ahead.

To resuscitate his bank, Mr. Lewis must find a way to raise capital quickly without further diluting shareholders, observers say. And this, they contend, means B of A must shrink itself, just as the embattled Citigroup Inc. is doing, less than six weeks after the Charlotte company increased its heft with a $19.6 billion acquisition of Merrill Lynch & Co. Inc.

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