BofA needs 34bn$

Somebody please help me understanding this: BofA, capitalization 74bn$, needs to raise 34bn$ because it is apparently failing the requirements of the stress test. This would probably mean a diluiting of 50%. Yet the stock is up 7%.

Below from Yahoo! finance:

NEW YORK (AP) — Bank of America Corp. stock rose as investors appeared comforted by reports that the bank has the means to cover a potential $34 billion shortfall in capital.

BAC	11.65	+0.81

The New York Times and The Wall Street Journal are reporting that regulators are telling the Charlotte, N.C.-based bank it needs about $34 billion in capital based on results of government “stress tests.” The New York Times quoted a bank executive, while the Journal report cited unnamed people familiar with the situation.

Bank of America declined to comment on the reports. The Treasury Department also declined to comment.

Shares of Bank of America rose 81 cents, or 7.5 percent, to $11.65 in morning trading.

Bank of America has been among the hardest hit banks by the credit crisis and ongoing recession. It has received more than $45 billion in government aid already, and has come under heavy scrutiny in recent months for its acquisition of Merrill Lynch…….