Exclusive-UBS floats concessions to broker Swiss capital compromise, say sources

From Yahoo Finance: 2025-03-26 01:02:00

UBS is offering to limit its investment bank size and hold more capital, facing tougher regulations two years after acquiring Credit Suisse. CEO Ermotti expressed surprise at regulatory obstacles. Shares rose by 1%. Wealth management could attract rivals. UBS may need over $40 billion in additional capital.

One potential concession is capping the investment bank at around 30% of total business. UBS is willing to add $5 billion in capital. Government regulations may take until 2028 to finalize. UBS is considering all scenarios, including moving its headquarters. Lawmakers aim to find a suitable solution without extreme rules.

Analyst Bosshard suggests a 25-30% cap on investment banking could be a compromise. UBS may add $5 billion in capital. Government regulations may not be finalized until 2028. UBS is exploring all options, including moving headquarters. Lawmakers aim to find a suitable solution without extreme rules.

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