UBS is pursuing an expanded banking license in the US to enhance its growth strategy, particularly in the wealth management sector. The Swiss bank aims to facilitate loans and deposits nationwide, leveraging its recent acquisition of Credit Suisse to attract high-net-worth clients. Chairman Colm Kelleher indicated plans to acquire a US wealth management firm post-integration of Credit Suisse.
UBS aims to enhance its US banking operations by obtaining a national Industrial Loan Company license from the FDIC, which would allow for a broader range of lending services. Despite skepticism from analysts regarding immediate share price increases, UBS's Chairman Kelleher sees potential for growth, particularly in wealth management, where nearly half of its revenue originates from the Americas. The bank's profitability in the US is hindered by its current licensing limitations, impacting its ability to offer high-margin loans.
Colm Kelleher, an Irish-born Wall Street banker, sought the Chairman position at Credit Suisse in 2020 but lost out to António Horta Osório due to his reluctance to relocate to Switzerland. Despite his earlier interest, Kelleher later expressed skepticism about Credit Suisse's viability, suggesting a merger was inevitable. He eventually became Chairman of UBS in 2021, with arrangements allowing him to maintain his London residence while fulfilling his duties.
Stefan Bollinger has been appointed as the new CEO of Julius Baer, succeeding Philipp Rickenbacher, who stepped down in February. Bollinger, previously co-head of private wealth management at Goldman Sachs, brings three decades of international experience in financial markets. His leadership aims to position Julius Baer as a leading private bank, focusing on sustainable growth and enhanced risk management.
UBS's future hinges on shareholder decisions, as demonstrated by recent market reactions to quarterly results where profits rose but share prices fell. Investors are wary of proposed regulatory changes aimed at enhancing stability while maintaining competitiveness, leading to underperformance compared to rivals. The bank must navigate the complexities of regulatory measures while demonstrating its resilience within the financial system.
Incompetence and scandals led to the downfall of Credit Suisse (CS), while UBS's focus on wealth management has made it more resilient. However, UBS is now deemed "too big to save," raising concerns about its liabilities and the effectiveness of cross-border bank mergers without clear resolution rules. Banking expert Martin Hellwig warns that higher capital requirements are essential for stability, yet the influence of banks has hindered significant reforms since the 2008 crisis.
UBS faces pressure for increased equity capital, with Finance Minister demanding up to 25 billion, raising concerns over bank salaries and competitiveness. NZZ editor Eric Gujer argues that excessive regulation could weaken the Swiss banking sector, advocating for market forces over bureaucratic measures, while acknowledging the inherent risks of capitalism.
UBS Chairman Colm Kelleher asserted that systemically important banks are adequately capitalized, countering calls for stricter regulations in Switzerland. He emphasized that the focus should shift from capital requirements to enhancing liquidity, citing lessons from the Credit Suisse collapse. Kelleher warned that excessive regulation could stifle business and push financial products out of the banking system.
UBS Chief Executive Colm Kelleher stated that systemically important banks are adequately capitalized, arguing that this has been the case since 2008. He criticized regulators for being backward-looking and emphasized the need to focus on liquidity and business models rather than excessive capital requirements, which he believes could harm the banking sector and the Swiss economy.
UBS Chairman Colm Kelleher stated that banks deemed too big to fail are adequately capitalized, arguing that since the 2008 financial crisis, they have strengthened their financial positions. He criticized proposed Swiss regulations aimed at increasing capital requirements, suggesting they could hinder business and overlook the importance of liquidity and business models, as highlighted by the Credit Suisse collapse. Kelleher emphasized the need for regulators to focus on enhancing liquidity rather than imposing excessive capital regulations.
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