Swiss finance minister says unlikely UBS would leave its home base
UBS•Karin Keller-Sutter said it was unlikely UBS would leave Switzerland after the upper house backed tougher capital rules. UBS estimates the rules could require about $18 billion in additional capital.
1. Relocation seen as unlikely
Swiss Finance Minister Karin Keller-Sutter said it was unlikely UBS would leave its Swiss base after the upper house voted in favour of tougher capital rules. She told CH Media that leaving would be more expensive than the new rules and legally complicated.
2. Capital rules backed
The proposal would require UBS to back its foreign units with 90% Common Equity Tier 1 capital. Lawmakers rejected UBS's preferred proposal of 50% CET1 and 50% Additional Tier 1 capital; UBS estimates the rules could require about $18 billion in additional capital. Keller-Sutter said UBS “went all out,” probably assuming it would get its way in parliament, and said the government had already made compromises with the bank. UBS rejected that claim earlier this week.
