Swiss Finance Minister: UBS Unlikely to Leave Swiss Headquarters Amid Capital Rule Changes
UBS Faces Stricter Capital Requirements in Switzerland
ZURICH, Sept 26 (Reuters) - Switzerland's finance minister said it was unlikely that UBS would leave its Swiss base after this week's upper house parliamentary vote in favour of tougher capital rules.
Finance Minister's Perspective on UBS Relocation
Such a move would be more expensive than the new capital rules and legally complicated, Karin Keller-Sutter told CH Media after UBS Chairman Colm Kelleher last week warned that the bank could rethink its Swiss base if capital rules became too harsh.
Parliamentary Vote and Its Impact on UBS
UBS was dealt a blow on Wednesday when the upper house voted in favour of tougher capital rules that the bank estimates could require it to hold about $18 billion in additional capital.
Details of the Proposed Capital Requirements
Lawmakers supported a proposal that would require UBS to back its foreign units with 90% Common Equity Tier 1 capital, rejecting a proposal favoured by UBS for 50% CET1 capital and 50% Additional Tier 1 (AT1) capital, which is cheaper to hold.
Government and UBS Reactions
Keller-Sutter said UBS "went all out", probably having assumed it would get its way in parliament. She said the Swiss government had already made some compromises with the bank, a notion UBS rejected in comments earlier this week.
UBS Declines Further Comment
UBS declined further comment on Saturday.
Reporting Credits
(Reporting by Marleen Kaesebier in Zurich; Editing by Alexander Smith)
