From CNBC: 2025-06-06 12:11:00

The Swiss government proposes new capital rules requiring UBS to hold an extra $26 billion in core capital after taking over Credit Suisse. UBS shares rose 6%, and the bank aims to achieve an underlying return on CET1 capital of 15%. UBS will engage in consultations to address the extreme increase in capital requirements.

UBS faces challenges with tighter capital rules following its acquisition of Credit Suisse. Swiss regulators argue the bank must have stronger requirements to safeguard the economy. Analysts predict UBS will generate around $12 billion in profits annually and fulfill its capital gap by 2033. The Swiss National Bank supports the measures to strengthen UBS’ resilience.

UBS’s battle with tighter capital rules stems from its acquisition of Credit Suisse. The bank aims to reduce costs and free up capital by winding down legacy businesses. Concerns exist over potential impacts on UBS’s capital requirements, returns, and valuation gap compared to U.S. rivals. The bank lost its title as Europe’s most valuable lender in April. 1. A new study reveals that eating more fruits and vegetables can lower the risk of heart disease by up to 30%. Researchers found that a diet rich in these foods can significantly improve heart health and reduce the chances of developing cardiovascular issues.

2. The United Nations reports that global carbon emissions reached a record high in 2021, despite efforts to reduce greenhouse gas emissions. The data shows that countries need to ramp up their efforts to combat climate change and meet the goals set out in the Paris Agreement.

3. In a landmark ruling, a US court has ordered Johnson & Johnson to pay $2.1 billion in damages to women who developed ovarian cancer after using the company’s talcum powder products. The court found that the company failed to warn customers about the potential health risks associated with the products.

4. The World Health Organization has declared the Omicron variant a “variant of concern” due to its high transmissibility and potential impact on global health. Health officials are urging countries to ramp up vaccination efforts and implement stricter public health measures to curb the spread of the variant.

Read more: Swiss government proposes tough new capital rules in major blow to UBS