Swiss lower house committee votes to discuss UBS capital rules
The upper house plan would add $16 billion in capital for UBS, and the lower house's next vote on substance will set the final figure.
Published
A committee of the Swiss lower house has voted to discuss the capital rules that would apply to UBS. The vote is to discuss, not to decide.
The government had proposed 100 per cent.
UBS said the upper house plan would add $16 billion in capital. It also said the total extra capital it has had to add since the Credit Suisse merger comes to about $33 billion. UBS's chief executive called the outcomes being pushed by the upper house 'very concerning'.
Scheduling a lower house discussion keeps the capital debate alive. The step is procedural. It neither settles nor worsens the uncertainty over UBS's capital requirements that has lingered since the Credit Suisse merger. The real test comes when the lower house votes on substance. That vote will set how much additional capital the bank must hold against its investment banking and international units.
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