The Swiss government outlined plans that would add billions of dollars to UBS Group AG’s capital requirements, deepening a showdown with the lender over its proposed banking reforms.
Bern stuck with a plan to submit a bill to parliament calling for the full capital backing of UBS’s foreign units on Wednesday even as it watered down other previously planned changes to the regulations. Together both...
The Swiss government’s push to tighten UBS’s capital requirements reflects a broader post-Credit Suisse paradigm: prioritizing systemic stability over short-term profitability. The strongest version of this narrative—its steelman—is that regulators are acting preemptively to prevent another banking crisis by ensuring foreign subsidiaries don’t become liabilities that drag down the parent bank. The concessions on deferred tax assets and software write-downs suggest a pragmatic attempt to balance ...