US EditionUBS Rejects Proposed Swiss Rules, Calls for Less Costly ...
UBS and Swiss business groups warn new rules could require US$24 billion extra capital, raising costs and risking credit tightening, despite government aims to prevent taxpayer bailouts.
- On Monday , UBS rejected Swiss Federal Council proposals to strengthen bank rules post-Credit Suisse, saying foreign-unit measures were disproportionate and threatened its business model.
- The Federal Council launched consultations in September with a response deadline in early January, pledging rules to prevent another taxpayer-backed crisis; the consultation closed on Friday with stakeholder statements published this week.
- UBS urged that Additional Tier 1 debt and bail-in bonds be considered and warned higher capital costs would add expenses for customers and tighten credit supply.
- Banking and business groups urged a compromise as the consultation closed on Friday, with UBS shares jumping more than 20 per cent and the Swiss People's Party backing moderation against Social Democrats and Green Party calls for tougher rules.
- The package could force UBS to hold US$24-billion in additional capital, creating competitive risks, while Reuters reports Swiss lawmakers are likely to choose more moderate regulations.
12 Articles
12 Articles
UBS warns Swiss capital plan risks competitiveness and shareholder value
UBS has opposed Swiss government plans to tighten bank capital rules after the collapse of Credit Suisse, warning the reforms would raise its costs sharply, hurt the country’s competitiveness and weigh on the wider economy. In its formal response to a government consultation on the reform package, UBS said the reform package – centred on forcing the bank to fully capitalise its foreign subsidiaries – is “excessive, disproportionate, not internat…
The large bank has officially expressed itself on the "Lex UBS". EconomySwiss and the Swiss Bankers Association also question the regulatory screw trick in discussion following the fall of Credit SuisseOnce again, UBS has expressed its main subject of discord with the Federal Council. i.e. the increase in own funds (capital to absorb losses) of the bank's foreign subsidiaries proposed by Bern in order to reduce the risks posed by taxpayers in a …
UBS, the only bank affected by the proposed new capital regulations, reiterated its opposition to the project on Monday, arguing that it would "disadvantage it internationally".
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