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UBS has proposed capping the size of its investment bank to address concerns from Swiss regulators regarding increased capital requirements following its takeover of Credit Suisse. The bank aims to limit the investment bank to 25% of its risk-weighted assets to mitigate risks, while executives warn that stricter capital reforms could harm its competitiveness. Swiss officials remain firm on ensuring the bank's systemically important parts can be separated in a crisis, despite UBS's lobbying efforts.
UBS has proposed capping the size of its investment bank to address concerns from Swiss regulators regarding increased capital requirements following its takeover of Credit Suisse. The bank aims to limit the division to 25% of its risk-weighted assets to mitigate risks, while officials push for full backing of foreign subsidiaries to ensure the bank's resolvability in a crisis. Tensions have arisen as UBS argues that proposed reforms could harm its international competitiveness, with Swiss finance minister Karin Keller-Sutter emphasizing the government's commitment to financial stability.
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 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 Group AG is in negotiations with Swiss regulators regarding capital requirements following the Credit Suisse acquisition, facing demands for a potential $40 billion equity backing. The bank is considering relocating its headquarters abroad, which could cost up to CHF 10 billion, as it navigates these challenges. Despite regulatory uncertainties, UBS shares have shown stability, indicating investor confidence in a favorable outcome.
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 seeking a compromise with Swiss authorities over equity capital requirements, proposing to limit its investment banking activities to 30% and raise an additional $5 billion in equity. Tensions have escalated between UBS CEO Sergio Ermotti and Finance Minister Karin Keller-Sutter, as the government demands an increase of CHF 10 to 25 billion in capital. Concerns are growing that UBS may consider leaving Switzerland amid fears of being acquired by an American bank.
UBS is willing to compromise on capital requirements, proposing to limit risky investment banking to 30% of its total business. Following the merger with Credit Suisse, UBS faces the need to raise nearly $20 billion in additional capital, with discussions of stricter requirements from Swiss authorities. The Ministry of Finance plans to present a proposal by the end of May, but insists no negotiations are currently underway.
UBS is seeking to mitigate stricter capital requirements by proposing to limit its risky investment banking activities to 30% of its total business. The bank is willing to increase its equity by an additional $5 billion, though this is less than the $15 to $25 billion demanded by Swiss regulators following its merger with Credit Suisse. The Swiss Ministry of Finance is preparing a proposal, but insists that no negotiations are currently underway.
Sergio Ermotti
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