UBS gains on report of it mulling ways to avoid Swiss bank rules
The lender’s discussions involve possibly combining with a foreign bank
The Swiss bank UBS has seen its share price rise following a report that the company is considering ways to evade stricter capital rules imposed by Swiss regulators. Morgan Stanley, Deutsche Bank, and Standard Chartered, among other banks, were mentioned as potential foreign counterparts for a combination deal to help UBS bypass the new regulations.
UBS has reportedly revived discussions about moving its operations out of Switzerland, in response to a proposal from a majority of the Upper House of Switzerland's parliament. The Upper House urged the bank to hold an additional $16 billion in CET1 capital, while the Lower House is expected to deliberate on the matter next. A final decision on the plan is not anticipated until sometime in 2027.
UBS shares surged 2.5 percent in early trading in Zurich on Friday, while Deutsche Bank and Standard Chartered also gained. In contrast, Morgan Stanley's shares dropped by 1 percent in New York trading on Thursday.
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