Foreign Banks Have Expressed UBS Merger Interest, Swiss Newspaper Reports
UBS leaders are weighing a foreign merger after Swiss lawmakers advanced rules that could require up to $20 billion in new capital.
- On Wednesday, the Swiss upper house of parliament voted to advance legislation requiring UBS to raise as much as $20 billion in capital, which bank executives warn would significantly hinder lending profitability.
- UBS CEO Sergio Ermotti criticized the government proposals on Tuesday, arguing that requiring 90% Common Equity Tier 1 capital instead of 100% CET1 offers no real compromise and distorts the bank's competitive position.
- Ermotti threw his weight behind a compromise proposal agreed last month allowing UBS to back foreign subsidiaries with 50% CET1 capital and 50% Additional Tier 1 capital, calling it a "balanced way to address the topic."
- Following this week's legislative setback, UBS senior leadership has revived discussions about moving the bank from under Swiss regulatory oversight, including a potential combination with a foreign bank.
- Holding excess capital puts UBS at a disadvantage compared to US banks, where capital is being freed by a deregulatory Trump administration, creating competitive pressure on the firm.
28 Articles
28 Articles
At least eight major foreign banks have expressed interest in Switzerland's UBS in a possible merger or cooperation, Swiss newspaper Blick reported on Sunday, citing a source familiar with the matter. According to Semafor on Friday, UBS's management has begun internal discussions on how to reduce its exposure to Swiss regulations, including through a possible merger with a foreign bank. Last week, the upper house of the Swiss parliament decided …
The UBS leadership is said to be offended by the fact that Swiss politics wants to regulate it more strongly. Now Ermotti is apparently considering an international association.
Deferred last week, the vote on capital requirements for international systemic banks is due to take place Wednesday in front of the upper house of parliament. A deadline put to the use of UBS and its director to try a last offensiveThe subject no longer ends up agitating Bern. The vote on the capital requirements imposed on foreign subsidiaries of international systemic banks, also called "Lex UBS", should have been held before the Council of S…
Coverage Details
Bias Distribution
- 46% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
