UBS contemplates relocating to the United States
Swiss banking giant UBS is reportedly contemplating a move to the United States, according to various news outlets. This potential relocation comes in response to the Swiss government's proposed stricter capital rules for UBS, aimed at preventing another crisis following the collapse of Credit Suisse.
The proposed capital requirements, totalling an additional $24 billion in core capital, have been described as "punitive and excessive" by UBS CEO Sergio Ermotti and UBS managers. The core demand is being discussed in Bern.
In July, Reuters reported that UBS had informed senior employees of the possibility of relocating its headquarters, citing an insider as the source of the information. The New York Post followed up on this report, stating that the bank's top brass fears losing international competitiveness with the added risk buffer. Sources familiar with the matter were cited as the source for the New York Post report.
Meetings between UBS managers and U.S. government representatives, including representatives from President Donald Trump's administration, have taken place to discuss a strategic shift. This shift could involve acquiring a U.S. bank or a merger with one. An internal assessment found that London would be one of the best options for an alternative location if a move were to be considered.
UBS, however, has not yet announced any decision regarding the relocation of its headquarters. The bank's CEO has stated that UBS wants to continue operating as a successful global bank from Switzerland. No definitive comments have been made by UBS regarding possible scenarios and reactions to the proposed capital requirements.
This news has sent ripples through the financial world, with many wondering about the implications of a major Swiss bank leaving its home country. The Swiss government will undoubtedly be closely monitoring the situation as UBS considers its options.
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