INTERVIEW - «Es geht um mehr als die UBS, es geht um die Schweiz», sagt der UBS-Chef Sergio Ermotti vor dem Showdown in Bern

In an interview with the NZZ, UBS CEO Sergio Ermotti discussed the upcoming debate on how much capital the bank should hold in the future. He emphasized that this issue marks a turning point for the large bank. Ermotti expressed frustration with the arguments being used in the discussion, stating that the regulatory change is fundamentally about UBS, as it only affects us.

He criticized the numerous misunderstandings and incomplete representations circulating in the debate, claiming they are creating confusion among authorities. Ermotti aimed to clarify the situation, emphasizing that the regulation is not targeted, proportional, or internationally coordinated. He also pointed out that it does not offer a solution to the problems that led to the Credit Suisse crisis.

Ermotti acknowledged that capital requirements will increase, but he disagreed with the proposed solution of 90 or 100 percent capital for subsidiaries. He criticized the regulation as inefficient, as it relies on authorities enforcing existing rules rather than enforcing the regulation itself. Ermotti stressed that while the Credit Suisse crisis required certain concessions to the financial market oversight, the new regulation aims to prevent banks from receiving such exceptions.

However, he opposed stricter capital requirements, arguing that consistent enforcement of existing rules would be more effective.

Ermotti acknowledged that the debate was emotionally charged, and a political price must be paid. He acknowledged that there is an unwillingness to accept the political reality, but he stressed the importance of maintaining a fact-based and rational discussion. He emphasized that the UBS must stand alone in this situation, making it difficult to maintain composure and find practical solutions.