Swiss lawmakers consider softer UBS capital rules
Legislators are discussing a reduction in the capital backing required for UBS foreign units from 100% to around 70% or 80%. This potential compromise could save the bank billions of dollars compared to the initial government proposal and aims to balance financial stability with global competitiveness.
Switzerland lawmakers are discussing a compromise to lower UBS capital requirements to 70% or 80% of foreign unit backing. This proposal is one of several under consideration, including a 50% backing option, to modify a government plan requiring 100% coverage. The 80% threshold would reduce the bank's estimated $20 billion capital burden by approximately $5 billion.
Shares in UBS rose 2% to their highest level since 2008 during early trading on June 9. The rally followed reports that parliamentarians may soften the government's initial requirement for full Common Equity Tier 1 (CET1) backing.
