Swiss Finance Minister and UBS CEO Clash on Swiss Capital Rules Ahead of Decision
Debate Intensifies Over Swiss Capital Requirements
ZURICH, Sept 22 (Reuters) - Swiss Finance Minister Karin Keller-Sutter and UBS CEO Sergio Ermotti on Tuesday defended their opposing views on new Swiss capital rules in a last round of appeals before a key parliamentary decision on Wednesday.
Finance Minister's Position on Capital Rules
Keller-Sutter, who oversaw the UBS takeover of Credit Suisse after the latter collapsed in 2023, said backing foreign units with 100% Common Equity Tier 1 capital was the best way to protect taxpayers. Her proposal, which has won backing from the Swiss National Bank, would make shareholders rather than taxpayer liable for losses, she told an event in Zurich.
Alternative Parliamentary Proposal
Another proposal under consideration in parliament's upper chamber, which seeks 90% CET1 backing of foreign units is close to the government's submission, Keller-Sutter added.
UBS CEO's Response and Concerns
Ermotti has rejected both outcomes as unacceptable and said the debate should acknowledge that UBS is not only a risk for Switzerland but also a benefit to its economy.
Impact on Competitiveness
"We are very concerned that this would make us uncompetitive and ultimately call into question the sustainability of the business model," he told the same audience in Zurich.
Future of Swiss Financial Center
"Over the coming weeks and months, we will shape the future of the financial center for the next 10 to 20 years," Ermotti added.
Next Steps in the Legislative Process
Following the decision in the upper house, the capital rules bill will move to the lower house of parliament, with a final decision expected at the end of this year at the earliest, and more likely in 2027.
(Reporting by Ariane Luthi, writing by John Revill)