UBS calls 90% capital plan excessive, not a compromise
The bank pushes back on a proposal that Goldman Sachs says would force it to hold $17 billion in extra capital.
Published
UBS has told regulators that a proposed rule requiring it to back its foreign units with 90% of capital is excessive, not a compromise, as the bank pushes for a less punitive outcome.
Switzerland's upper house has already backed the 90% plan, which largely mirrors the government's original demands, according to Goldman Sachs. The bank estimates the measure would leave UBS facing $17 billion in extra capital requirements.
UBS shares fell 1.8% to CHF41.02 on Tuesday, September 22, as chief executive Sergio Ermotti spoke out against the proposal ahead of the upper house vote, according to Investing.com.
UBS's rejection signals it will not accept the most punitive version of the plan without further negotiation. Parliament is pushing for a vote this month, but a parliamentary committee has indicated a final decision could take until 2027. That leaves the bank facing an extended period of regulatory uncertainty, which is likely to keep sentiment toward the stock bearish in the near term despite its pushback.