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UBS shares fell 3.4% to 28.51 francs amid concerns over US tariff plans and a downgrade by Bank of America, which lowered its recommendation to "underperform" and price target to 28 francs. Analysts predict UBS may need to raise $20 to $25 billion in capital due to stricter requirements, raising fears of a potential taxpayer bailout.
UBS plans to downsize its investment bank to mitigate the impact of increased regulations following its acquisition of Credit Suisse. The bank aims to limit its investment banking activities to about 30% of total operations and bolster its capital base, while expressing concerns that excessive regulations could harm its competitiveness and lead to a potential relocation of its headquarters. UBS estimates it will need $19 billion in additional capital due to new rules, but is prepared to contribute only $5 billion, which falls short of regulatory demands.
UBS plans to downsize its investment bank to mitigate regulatory pressures following its acquisition of Credit Suisse. The bank aims to limit its investment banking activities to about 30% of total operations and is considering raising $5 billion in capital, though this is less than regulatory demands. UBS is also exploring potential relocation options while affirming its commitment to remain in Switzerland.
UBS is negotiating with regulators to limit its investment bank's size and increase capital reserves to avoid stricter regulations following the Credit Suisse collapse. The bank may cap its investment banking division at 30% of total business and is considering adding $5 billion in capital, though it faces demands for much more. UBS executives warn that excessive capital requirements could harm its competitiveness and potentially lead to a relocation of its headquarters, despite reassurances from lawmakers that extreme regulations will not be imposed.
UBS CEO Sergio Ermotti emphasized the need for improved early warning systems to enhance banking safety, following the collapse of Credit Suisse. He advocated for prudent regulatory measures and supported public stress tests to identify financial institutions' vulnerabilities. Ermotti also highlighted the importance of accountability in cases of negligence, while awaiting clarity on capital requirements in May.
UBS CEO Sergio Ermotti has called for improved early warning systems to enhance bank safety, emphasizing the need for authorities to better detect potential issues. He supports the government's reform proposals but warns against excessive capital requirements that could disadvantage UBS and the Swiss financial sector. Ermotti anticipates more clarity on capital requirements by May, while advocating for accountability measures for negligent individuals in the banking industry.
UBS CEO Sergio Ermotti has urged authorities to enhance early warning systems to better identify banking issues, following the collapse of Credit Suisse. He emphasized the need for caution in new regulations, advocating for public stress tests to assess financial institutions' vulnerabilities and supporting reforms on compensation recovery for negligent actions. Clarity on capital requirements is anticipated in May, though Ermotti noted UBS's lack of influence over the political process.
The Swiss Ministry of Finance has fined former Credit Suisse risk head Lara Warner 100,000 Swiss francs for failing to report suspected money laundering linked to a $7.9 million payment in 2016, part of the Mozambique scandal. This penalty is the second-highest for such breaches. Warner's lawyer claims the decision is unjust, asserting that she was not responsible for the failure to report and plans to seek judicial review.
UBS has confirmed its share buyback plans for 2025, totaling $3 billion, with $1 billion targeted for the first half and up to $2 billion for the second half, contingent on capital requirement stability. CEO Sergio Ermotti noted that clarity on potential capital tightening from the Swiss Ministry of Finance is expected in May, though the outcome remains uncertain.
UBS has removed diversity targets from its 2024 annual report, shifting its focus to meritocracy. Previously, the bank aimed for 30% of management roles to be held by women and to increase ethnic minority representation among U.S. financial advisors. A spokesperson emphasized the commitment to a diverse workforce while prioritizing merit in hiring and promotions.
Oliver Hirt
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ubs shares decline amid tariff concerns and analyst downgrade
13:51 27.03.2025
UBS plans investment bank downsizing to navigate regulatory challenges
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11:08 19.03.2025
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