Employees group reportedly warns of major Swiss job losses if UBS relocates
UBS•The Swiss Bank Employees Association reportedly warned that 10,000 to 12,000 of UBS’s roughly 34,000 Swiss jobs could be at risk if tougher capital rules prompt the bank to relocate.
1. Jobs at risk
The Swiss Bank Employees Association warned lawmakers that a UBS relocation could cost 10,000 to 12,000 jobs in Switzerland, on top of cuts already under way as the bank integrates Credit Suisse.
2. Capital rules debated
A committee in the lower house of Switzerland’s parliament is preparing to discuss how much capital UBS must hold to back its foreign subsidiaries. Last month, the upper house proposed requiring 90% Common Equity Tier 1 capital for those units. UBS has said that requirement is too high, and its chairman has warned the bank would carefully consider its future in Switzerland if the rules are too harsh.
3. Association seeks compromise
The association called for a “viable compromise,” saying stricter capital requirements could call into question UBS remaining based in Switzerland. Shareholders have called for the bank to leave, and UBS has been drafting contingency plans that could include shifting its headquarters or merging with another lender.
