Swiss upper house votes for 90% CET1 capital backing plan, in blow to UBS
Lawmakers backed a compromise that could force UBS to add as much as $20 billion in CET1 capital.
27 Articles
27 Articles
The UBS Group stated that it will continue to fight a political pressure to dramatically increase its capital demands, after parliamentarians supported most of the government's plan on Wednesday (23) to make the global wealth manager more resilient to the crisis. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Nation's largest bank would have to cover 90% of value of foreign subsidiaries with high-quality equity capital
MEPs voted in favour of an increase in CET1 capital to 90% for subsidiaries abroad, a level lower than 100% demanded by the government. UBS and the economic umbrellas fear a loss of competitivenessThis is a step forward in the long political process that will determine the future regulatory framework that will apply to UBS, the only Swiss bank of systemic importance at global level. More than three years after the disappearance of Credit Suisse,…
The stricter capital requirements adopted by the Council of State for Grossbank trigger conflicting reactions. The lines of conflict in the capital dispute remain hardened.
In a statement released this Wednesday, the Swiss bank, led by Sergio Ermotti, stated that Switzerland's capital requirements are already among the most stringent in the world and argued that the result of the vote "is not a compromise" and does not respond to the causes of Credit Suisse's collapse.
The Council of State clearly spoke out in favour of tough capital requirements in the UBS regulation. This was also due to an interview by the head of the company.
Coverage Details
Bias Distribution
- 46% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
