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political pressure on banks raises concerns over equity and management effectiveness
Alfonso Tuor critiques proposed political regulations for UBS, arguing that increasing equity could harm profitability and lead to riskier management decisions. He emphasizes that the failure of Credit Suisse was due to poor management and regulatory oversight, not merely a lack of equity. Tuor also believes that while current rules are adequate, they were not enforced effectively, and he opposes salary caps for bank executives, asserting that financial dominance makes such measures impractical.
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