UBS Capital Requirements Rise Following Switzerland's Proposal

Key Takeaways Switzerland wants UBS to fully capitalize foreign units, raising capital needs by up to $26B. UBS can offset$8B via reduced AT1 bonds, resulting in an $18B net capital increase. UBS opposes the hike, calling it disproportionate and misaligned with global standards.Switzerland’s Federal Department of Finance (“FDF”) has proposed stricter rules for UBS Group AG (UBS) following its takeover of Credit Suisse. The move has been attempted to reduce the risks of another Credit Suisse-style crisis. ...