UBS is briefing senior staff that the need to examine moving its HQ from Switzerland has grown since the government proposed new capital rules, a source with knowledge of the matter said, while another pointed to London as a favourite alternative.
Why it matters
The Swiss government proposed reform measures in June that envisage that UBS – as Switzerland’s sole remaining global bank with a balance sheet about double the size of the economy – should capitalise its foreign subsidiaries by 100% rather than 60% currently, to cover potential losses abroad. That could mean the bank has to carry an extra $24 billion in capital.