By Jonathan Stempel

BANGALORE (Reuters) - U.S. banks may need to raise $65 billion of additional capital to cope with mounting losses from a global credit crisis that will not peak until 2009, Goldman Sachs & Co (GS.N: Quote, Profile, Research) analysts said on Tuesday.

The new capital would be on top of $120 billion already raised by the industry, analysts led by Richard Ramsden said.

"Banks will not turn until a peak in credit costs is in sight," the analysts wrote. "Moreover, weaker banks are unlikely to benefit from consolidation as bank deals always slow when credit is deteriorating and larger banks are hamstrung by their own problem assets as well as accounting requirements."

Goldman said it lowered its price targets for 14 banking companies and cut its 2008 earnings-per-share forecasts for 11.

Among the banks for which Goldman cut both are BB&T Corp (BBT.N: Quote, Profile, Research), PNC Financial Services Group Inc (PNC.N: Quote, Profile, Research), SunTrust Banks Inc (STI.N: Quote, Profile, Research), U.S. Bancorp (USB.N: Quote, Profile, Research) and Wells Fargo & Co (WFC.N: Quote, Profile, Research).

Goldman also lowered its price targets for Wachovia Corp WB.N and Washington Mutual Inc (WM.N: Quote, Profile, Research), and its earnings outlook for Bank of America Corp (BAC.N: Quote, Profile, Research).

In afternoon trading, the 24-member KBW Bank Index was down 3.2 percent, while the 50-member KBW Regional Bank Index dropped 2.6 percent. These contributed to declines in broader market indexes as well.

Zions Bancorp (ZION.O: Quote, Profile, Research), a Salt Lake City-based bank, fell as much as 12.8 percent after projecting higher nonperforming assets and saying weakness in residential construction and land values in the U.S. Southwest should persist into 2009. Goldman also cut Zions' price target and earnings forecast.