Fed's Kohn: money center banks have enough capital

WASHINGTON (Reuters) - Federal Reserve Vice Chairman Donald Kohn on Tuesday assured lawmakers that the largest U.S. money center banks are adequately capitalized but warned that they will need to raise more capital in order to rebound as the economy recovers.

"I don't think that the level of capital that they currently have is inadequate to safeguard their fundamental safety and soundness," Kohn told the Senate Banking Committee.

"I do think that raising capital will enable them to participate in the rebound," he said. "There are some whose activity will be constrained if they don't raise more capital ... They will be smaller institutions if they don't raise capital," he cautioned.

(Reporting By Joanne Morrison; Editing by James Dalgleish)