UBS Chairman says AT1 capital proposal is an acceptable compromise

Key Takeaways

• UBS can live with the WAK‑S compromise of 50% CET1 and 50% AT1 backing as more balanced than the Federal Council’s 100% CET1 proposal, helping limit additional cost to about USD 13 billion (ubs.com)
• The compromise emerged from the Economic Affairs and Taxation Committee of the Council of States amid debate on tougher rules after the Credit Suisse collapse, aiming to preserve UBS’s global competitiveness while strengthening loss‑absorbing capacity (parlament.ch)
• Parliament has postponed the upper house vote to next week as debate continues; alternate proposals include backing foreign units with 90% CET1 rather than AT1, which would raise costs and may gain traction (live.euronext.com)