UBS voices concern over capital requirements
Additional capital is wrong remedy, chairman says
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BASEL, Switzerland, April 24 Reuters UBS executives on Wednesday told shareholders that the bank has major concerns about the Swiss government39;s recently announced plan to hit the country39;s largest lender with tougher capital requirements.

The government laid out plans two weeks ago for how to police banks deemed too big to fail to shield the country from a repeat of the collapse of Credit Suisse, which UBS acquired in a rescue arranged by the authorities and backed by the state.

We are seriously concerned about some of the discussions related to additional capital requirements, UBS Chairman Colm Kelleher said at the bank39;s annual general meeting in Basel.

Additional capital is the wrong remedy.

UBS might need to find 15 billion to 25 billion in additional capital to comply with proposed new requirements, according to the finance ministry.

Kelleher said Credit Suisse had failed not because of insufficient capital requirements, noting that they had been on the rise for global banks since the 20072009 financial crisis, making them more resilient.

Effective lossabsorbing capacity has increased around 20 times since the global financial crisis of 2008, he said. At our firm, it now exceeds 200 billion.

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