Swiss lawmakers vote to raise capital requirements, dealing setback to UBS
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UBS Group suffered a setback on Wednesday as Swiss lawmakers voted overwhelmingly in favor of a proposal that could ultimately force the global wealth management giant to hold tens of billions of dollars in additional capital. The upper house of the Swiss parliament passed an amendment to the government's regulatory reform bill by a vote of 29 to 16, requiring UBS to cover up to 90% of the value of its foreign subsidiaries with high-quality equity capital. This is a slight adjustment from the government's original 100% coverage plan and represents a partial victory for Swiss Finance Minister Karin Keller-Sutter, who has pushed for two years to raise capital levels at Switzerland's largest bank to ensure its overseas operations can be safely sold off during a crisis. UBS CEO Sergio Ermotti and Chairman Colm Kelleher had opposed the 90% plan, instead supporting an alternative proposal that would significantly increase the use of convertible debt to achieve the same goal.
Source report
September 23 — UBS Group suffered a setback on Wednesday after Swiss lawmakers voted decisively in favor of a proposal that could ultimately force the global wealth management giant to hold tens of billions of dollars in additional capital.
The upper house of the Swiss parliament voted 29 to 16 in favor of an amendment to the government's regulatory reform bill, requiring UBS to cover up to 90% of the value of its foreign subsidiaries with high-quality equity capital.
The measure represents only a slight adjustment from the government's original proposal of 100% coverage and marks a partial victory for Swiss Finance Minister Karin Keller-Sutter. Over the past two years, she has pushed for higher capital levels at Switzerland's largest bank to ensure its overseas operations could be safely sold off during a crisis.
UBS CEO Sergio Ermotti and Chairman Colm Kelleher had previously opposed the 90% plan, instead supporting an alternative proposal that would significantly increase the use of convertible debt to achieve the same objective.
Source
财联社Eastern
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Swiss Upper House Votes to Force UBS to Hold 90% Equity Capital for Overseas Units