"Not a victory for UBS": The Economic Commission of the Council of States is taking a stand on equity against Finance Minister Keller-Sutter
After tough negotiations, the preparatory commission is in favour of a greater role for AT1 bonds in UBS's capital structure. These are the key details.
The Swiss parliamentary commission has proposed that UBS can use 50% of Additional Tier 1 (AT1) bonds to back its foreign subsidiaries, rather than the 100% core equity capital required by the government. The proposal, passed with 10 votes in favor and 2 against, aims to strengthen the bank's capital requirements while allowing it to use cheaper AT1 bonds.
The decision is seen as a compromise between the bank and the government, with the commission's president stating that it protects both the financial sector and taxpayers. The proposal will now be put to a vote in the Ständerat.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
