Shares of UUB fell below 40 Swiss francs on Wednesday and continued sliding on Thursday, reaching 38.84 francs — a low not seen since mid-June 2026. The stock has shed more than 10% over the past two weeks.
The decline followed a decision by Switzerland’s Council of States (Ständerat) on Wednesday to impose tougher own-funds rules on systemically important large banks, against the wishes of UBS, the sole institution directly affected. Under the new rules, foreign subsidiaries of systemic banks must be backed by at least 90% common equity tier 1 (CET1) capital.
The proposal had been pushed through by a strong minority within the prep committee, overriding opposition from banks and industry bodies.
UBS strongly criticized the vote, calling it an “excessive” tightening of Swiss capital requirements. The bank argues the rule disproportionately targets its overseas operations.
Peter V. Kunz, a legal professor at the University of Bern, told news agency AWP that the Council of States’ decision came as a surprise. He said the final word is not yet settled, noting the National Council could prove more accommodating to UBS than the upper house.
Kunz was also critical of UBS CEO Sergio Ermotti, blaming his recent public statements for hardening political opposition. Ermotti’s interviews and media appearances over the past several days came across as overly negative, Kunz said, damaging relations not only with the public and press but with politicians as well.
“If Mr. Ermotti had remained silent, we would likely be looking at a 50-50 outcome today,” Kunz said. “Mr. Ermotti’s ego has gotten out of control.”
He added that UBS’s lobbying campaign had been unusually aggressive for three years, even reaching out to university professors — something Kunz described as highly exceptional.
