Citigroup, Bank of America CDS widen after report

NEW YORK, April 28 (Reuters) - The cost of insuring debt of Citigroup (C.N) and Bank of America (BAC.N) with credit default swaps rose on Tuesday after the Wall Street Journal reported that regulators have told the banks they may need to raise more capital.

Citigroup's five-year credit default swaps widened by 70 basis points to 615 basis points, while Bank of America's widened by 25 basis points to 325 basis points, according to data from Phoenix Partners Group.

The additional capital may be required as a result of recent stress testing of the country's top 19 banks, the Journal reported, citing people familiar with the situation. Officials of both banks are objecting to the preliminary finds of the tests, the people told the paper. (Reporting by Dena Aubin, Editing by Walker Simon) (dena.aubin@thomsonreuters.com; +1-646-223-6325; Reuters Messaging: dena.aubin.reuters.com@reuters.net))