Capital punishment: how Swiss bank reforms could hit UBS

Bank’s year-long tussle with government will come to a head with proposals to be unveiled on Friday. The Swiss government on Friday will lay out its long-awaited reforms to the country’s bank capital rules, and the centrepiece proposal will affect just one company: UBS. Switzerland’s Federal Council and financial regulators have been at loggerheads with the country’s largest lender — and most systemically important company — since last year when they proposed strengthening the country’s banking system in the wake of Credit Suisse’s demise. The uncertainty has weighed on UBS’s share price, with the stock falling 3 per cent over the past year, while the Euro Stoxx Banks index, which tracks the biggest lenders in the Eurozone, has climbed about 40 per cent. The draft legislation on Friday will set out a series of measures as part of a “too-big-to-fail” package. By far the most important will be the proposals for how much loss-absorbing capital UBS will be forced to have. The bank’s ... Full story here Are you the author? Previous post See more for 3.) Swissinfo Business and Economy Next post
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