Business

UBS Considers Moving Headquarters from Switzerland if Capital Rules Tighten: WSJ

AI SUMMARY

UBS is preparing contingency plans to potentially move its headquarters out of Switzerland if lawmakers tighten the bank's capital requirements.

UBS is preparing contingency plans to move its headquarters out of Switzerland if lawmakers tighten capital requirements.
Potential options include acquiring a US financial institution, merging with a European rival, or selling to a US bank.
Switzerland is considering tougher too-big-to-fail capital rules following UBS's 2023 rescue of Credit Suisse.
The government plan would require UBS to hold an extra US$20 billion in Common Equity Tier 1 capital by making its foreign units 100 percent backed.
UBS has pushed back against the proposal, arguing the requirement is excessive and harms its international competitiveness.
US investor Artisan Partners urged UBS to leave Switzerland, estimating the changes could require an additional US$16 billion in capital.
UBS chief executive Sergio Ermotti stated that staying in Switzerland remains good for the economy and shareholders.
Chairman Colm Kelleher stated that the preferred outcome is a Swiss compromise that allows the bank to stay.