Market Chatter: UBS May Gain $24 Billion Break as Switzerland Rethinks Capital Plan

MT Newswires Live12-06 01:02

UBS (UBS) may avoid a hefty capital increase after the Swiss government signaled it could ease parts of a proposed regulation that might have forced the bank to raise up to $24 billion in additional capital, Reuters reported Friday, citing three people familiar with the matter.

The government is looking to ease rules it controls directly, particularly those on deferred tax assets and software, which account for $11 billion of the potential capital requirement, the report said.

A Swiss government spokesperson said in an emailed statement to MT Newswires that the decision-making process is still ongoing, and the Federal Council has not yet made a decision.

UBS did not immediately respond to a request for comment.

UBS shares rose 4.4% in recent Friday trading.

(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.)

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