Swiss upper house backs 90% capital compromise for UBS
Switzerland's upper house supported a compromise requiring UBS to back 90% of foreign units with high-quality capital, despite opposition from the bank.
The upper chamber of Switzerland’s parliament has supported a proposal requiring UBS Group AG to cover 90% of its foreign subsidiaries with Common Equity Tier 1 capital, the highest-quality financial reserve.
The vote marks a middle ground between the Swiss government's original demand for full equity backing and a softer proposal relying heavily on convertible debt, which had been favored by the lender. Swiss authorities have been seeking stricter regulatory oversight following the emergency takeover of Credit Suisse.
Despite parliamentary momentum behind the 90% requirement, UBS has voiced opposition to the measure, arguing against increased equity mandates for its international operations.
Sources: Bloomberg