UBS (UBS) is seeking to prevent the imposition of tougher Swiss banking regulations by proposing it limit the size of its investment banking operations to 30% of its business and hold up to $5 billion more in capital reserves, Reuters reported Wednesday, citing unnamed people familiar with the discussions.
The tougher proposed regulations follow UBS's 2023 Swiss taxpayer-backed buyout of the collapsed Credit Suisse.
UBS opposes the tightening of rules, including an estimated $40 billion more in capital reserves requirements, saying it will hurt the banking industry and possibly force the company to redomicile outside Switzerland, Reuters reported.
UBS said in a statement to MT Newswires that while it supports the government's efforts to increase financial stability "adjustments to the regulatory framework should be targeted, proportionate and internationally aligned."
It added that it opposes measures that "lead to considerable additional costs for the bank as well as Swiss households and companies and are not compatible with the goal of having a globally competitive financial center."
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Comments