UBS mulls moving headquarters from Switzerland if capital rules tighten: WSJ
The options include acquiring a US financial institution and relocating, merging with a European rival, or selling itself to a US bank,...
UBS is reportedly considering several contingency plans to potentially relocate its headquarters outside Switzerland if capital requirements tighten, according to a report by the Wall Street Journal. The options being explored include acquiring a US financial institution, merging with a European rival, or selling itself to a US bank.
The proposal comes as Switzerland is considering stricter "too-big-to-fail" capital rules following UBS's 2023 rescue of Credit Suisse. Currently, UBS needs to hold 60% of its Common Equity Tier 1 capital in foreign units, but the government plans to raise this to 100%, a move UBS has strongly opposed as excessive and detrimental to its international competitiveness.
Artisan Partners, a US investor, has also urged UBS to leave Switzerland, arguing the proposed capital requirements are "punitive" and that Switzerland is no longer an attractive location for the bank. However, UBS's CEO, Sergio Ermotti, maintains that staying in Switzerland is beneficial for the economy and shareholders, and the company's chairman, Colm Kelleher, has called for a "Swiss compromise" to allow UBS to remain in the country despite the new rules.
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