May 5 (Bloomberg) -- JPMorgan Chase & Co., the second- largest U.S. bank by assets, is the only lender among 12 commercial banks being stress-tested by the government that probably won’t need more capital, Friedman, Billings, Ramsey Group Inc. analyst Paul Miller wrote to clients today.

All the commercial banks may need capital under a “more adverse” scenario, Miller wrote. The Treasury is testing 19 of the biggest U.S. financial firms for how their loans will perform if the economy worsens. Results are expected to be made public this week.

Miller’s assessment mirrors that of JPMorgan Chief Executive Officer Jamie Dimon, who said yesterday on a conference call he didn’t believe the New York-based lender needed to raise more capital. Dimon, 53, repeated his desire to repay the $25 billion his firm received in October as part of the government’s Troubled Assets Relief Program.

The Federal Reserve plans to deliver results of the tests to executives today that may show 10 companies need additional capital to weather a deeper recession, people familiar with the matter said. Much of the needed capital would likely come from converting preferred shares to common stock, the people said.

Bank of America Corp. and Wells Fargo & Co. would need a combined $31.35 billion in additional capital after the U.S. finishes stress-testing, the FBR report said.

Excluded Firms

Miller’s list excluded firms he doesn’t consider commercial banks, such as Goldman Sachs Group Inc. and Morgan Stanley, as well as credit-card lender American Express Co. and insurer MetLife Inc.

JPMorgan fell 2 percent to $35.07 in 10:58 a.m. New York Stock Exchange composite trading. Bank of America, based in Charlotte, North Carolina, fell less than 1 percent to $10.31 and Wells Fargo, based in San Francisco, dropped 5.4 percent to $22.93.

Bank of America, the largest U.S. bank by assets, will need $19.02 billion to achieve a 4 percent ratio of tangible common equity to risk-weighted assets, while Wells Fargo, the fourth- largest bank, will need $12.33 billion, said Miller, a former bank examiner.

“Banks will most likely bolster their capital levels by converting preferred equity (including TARP) into common equity, as it is the cheapest and easiest route,” Miller said.

Representatives from Bank of America, Wells Fargo and JPMorgan declined to comment.

Government Funds ‘Available’

Federal Reserve Chairman Ben S. Bernanke said today in prepared remarks to the congressional Joint Economic Committee that banks “will be required to develop comprehensive capital plans” and that funds from the government “will be available as needed.”

Last week, the Fed delayed the release of the tests, originally scheduled for yesterday, as banks challenged some of the conclusions. Citigroup and Bank of America were among the banks found to need additional capital, people familiar with the matter have said. Both firms disputed the Fed’s assessment.

Banks are trying to avoid accepting more federal funds as well as the potential pay and other restrictions that may be a condition of the aid. Not including repayments, the Treasury has about $110 billion left of the $700 billion TARP funds to pass out.

To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net. To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net

Last Updated: May 5, 2009 11:25 EDT