Swiss upper house votes for 90% CET1 capital backing plan, in blow to UBS
The 29-16 vote sends the bill to the lower house as lawmakers seek higher capital buffers after Credit Suisse’s collapse.
12 Articles
12 Articles
Swiss upper house votes for 90% CET1 capital backing plan, in blow to UBS
Switzerland's upper house of parliament on Wednesday voted in favour of capital rules that would require UBS to back its foreign units with 90% Common Equity Tier 1 capital, dealing a blow to the bank, which had lobbied against it.
UBS Suffers Setback in Parliament After Lawmakers’ Capital Vote
(Bloomberg) -- The upper house of Switzerland’s parliament voted for a compromise plan on UBS Group AG’s capital requirements that largely replicates the government’s demands, in a setback for the bank.
UBS has to outlaw its foreign subsidiaries with more hard core capital than the bank would have hoped. Swiss Parliament advocated tougher regulations.
Watch UBS CEO Ermotti Says Proposed Capital Compromise 'Bearable'
UBS Chief Executive Officer Sergio Ermotti said the idea to let the lender use a form of debt known as AT1 bonds to meet some of the capital requirements being proposed by Swiss lawmakers would be "bearable." Ermotti made the comments in an interview in Neue Zuercher Zeitung published Sunday. Bloomberg's Tom Metcalf reports.
The Council of State shows rigour in the equity rules for UBS. Swiss Grossbank UBS is expected to have to subdue 90 percent of its holdings abroad with Common Equity Tier 1 capital (CET1).
The Swiss Grossbank is supposed to have to subdue 90 percent of its holdings abroad with hard core capital. That is what the Council of State has decided.
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