The leaders of ubs, with Sergio Ermotti in the head, they don't fit. The Swiss government yesterday he proposed stricter rules for ubs after its acquisition of Credit Suisse, which could force her to detain $26 billion more of core capital, confirming some of the bank's worst fears about the new regulation. When UBS Group AG acquired Credit Suisse just over two years ago, some called it the “deal of the century.” But the full cost of the acquisition for the world's largest asset manager is only now becoming clear, and its top brass have laid out its capital plan "extreme" e not aligned on the international level.
The main proposal, for which the bank will be between six and eight years old to prepare after the law comes into force, provides that UBS must fully consolidate foreign subsidiaries, as expected by numerous analysts, politicians and managers, reports Reuters. Today UBS is required to consolidate only 60% of its foreign subsidiaries and can cover part of the capital with AT1 debt.
Il UBS title yesterday, lagging behind its European peers due to uncertainty over government decisions, it gained as much as 7% yesterday after the decisions were made public yesterday afternoon, before closing up 3,8%.
Colm Kelleher and Sergio Ermotti: “We will not backtrack”
UBS executives argue that the additional capital burden will put the bank at a disadvantage compared to competitors and undermine Switzerland's competitiveness as a financial center.
"We will not march back on our globally diversified business model, which makes us safer and more resilient, especially in turbulent times like these,” the president wrote. Colm Kelleher and Sergio Ermotti, the company's CEO, in a note to staff seen by Bloomberg.
The bank’s presence in the Americas, Asia Pacific and across the EMEA region provides economic benefits to those regions and beyond, executives said. It also helps develop international “know-how” that the firm’s clients value, the pair wrote. In the memo, Ermotti and Kelleher called the requests “extreme” and said they were “reviewing the significant amount of information disclosed.” They will share their assessment in due course. “We will maintain our position,” the executives said.
“UBS will also evaluate appropriate measures, if and where possible, to address the negative effects that extreme regulation would have on its shareholders,” UBS said in a statement late on Tuesday. The bank confirmed its previously announced share buyback plans for 2025 and added that it would decide early next year on the amount of the 2026 redemption.
