UBS and Switzerland Eye Capital Compromise Amid New Regulations Debate
UBS and the Swiss government are considering compromises on new capital rules. The government might lower the extra capital requirement from $24 billion to $15 billion, which could be manageable for UBS. The ongoing debate involves regulatory changes aimed at balancing financial stability and competitiveness.
UBS and the Swiss government are reportedly open to compromising on new capital regulations, potentially shaping a more manageable legislative outcome for the prominent bank.
The Swiss government's initial proposal demanded UBS to shore up $24 billion in extra capital. However, insiders suggest an adjustment to $15 billion could be more acceptable to UBS. Official responses from UBS criticize the proposed requirements as disproportionate, even as financial markets reacted positively to the possibility of lower requirements.
Discussions between UBS and the government are still ongoing, with final decisions expected from the parliament in the coming year. UBS hopes for pragmatic regulatory changes in tune with international standards, while the Swiss finance ministry maintains commitment to their current stance until parliamentary deliberations unfold.
(With inputs from agencies.)
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