UBS Plans Headquarters Move to Avoid Swiss Capital Rules
UBS is developing contingency plans to relocate its headquarters from Switzerland to avoid proposed capital requirements estimated to cost the bank $16 billion.
The global bank UBS is developing contingency plans to relocate its headquarters from Switzerland to avoid tougher capital requirements proposed by Swiss lawmakers. The bank estimates that the legislation, intended to prevent a sovereign crisis following the rescue of Credit Suisse, would cost approximately $16 billion.
Potential strategies under consideration include merging with a European rival, selling the bank to a U.S. firm, or acquiring a U.S. financial institution and relocating. While CEO Sergio Ermotti previously emphasized a national duty to remain a Swiss champion, he and Chairman Colm Kelleher are reportedly aligned on exploring these options if the government maintains its stance.
Swiss Finance Minister Karin Keller-Sutter has dismissed the likelihood of a departure, asserting it would be more costly for UBS to leave than to stay. The proposed legislation still requires parliamentary approval, and the bank would have seven years to phase in the requirements if passed.
