Switzerland’s finance minister, Karin Keller-Sutter, dismissed speculation that UBS would leave the country over proposed tighter capital rules, calling the scenario "little plausible" and noting it would be far costlier and legally far more complicated than the bank’s current obligations.
In an interview with CH Media newspapers, Keller-Sutter stressed that UBS’s business model is built on Switzerland — its “Swissness,” domestic rule of law and political stability — and argued the new capital requirements are manageable for the global lender. She acknowledged, however, that relations between the Federal Council and UBS are strained, saying the bank has rejected capital-strengthening measures outright from the outset and has offered no sign of flexibility.
The government, she added, has already conceded roughly USD 6 billion to UBS on other capital requirements. Despite that, the bank has labelled all proposals “extreme.” “It has gone all in,” Keller-Sutter said.
Following the recent Ständerat ruling, neither Keller-Sutter nor UBS chief executive Sergio Ermotti has contacted the other. “That’s also not necessary,” she said. The finance minister plans to meet UBS president Colm Kelleher in November as part of a routine exchange with financial-sector representatives, but added that formal negotiations are not on the table while the dossier remains before Parliament.
Speculation about a potential UBS exit lifted the bank’s shares as much as 4.3 percent on Friday, according to the Semafor report that the bank’s leadership had resumed talks about leaving, including the possibility of a merger with a foreign lender such as US peer Morgan Stanley. UBS itself has neither announced nor categorically ruled out a relocation. At the Bankers’ Association annual meeting in St. Gallen in mid-September, Kelleher said staying in Switzerland remains the top priority, adding: “If we end up in a situation where we are no longer competitive, we naturally have to think about it.”
