UBS shares fell 0.2% on Wednesday, extending a decline of 7.2% from a multi‑year high of 45 Swiss francs reached the previous week. The drop came as Goldman Sachs CEO David Solomon told a Barclays conference that the bank’s fixed‑income trading business was weaker than in prior quarters and that overall costs had risen, although he described equity trading as "very strong". Goldman Sachs’ own stock lost 3.9% on Wall Street.
In Bern, the Swiss Senate (Ständerat) is set to debate stricter capital requirements for UBS. FDP representatives said they would likely vote to reject the government’s proposal and send the matter back to the Federal Council, arguing that the Federal Council is the appropriate body to decide on capital rules under existing banking law. FDP parliamentarian Andrea Caroni told Reuters he expects a majority of his party to support the motion.
The government, led by Finance Minister Karin Keller‑Sutter, wants UBS to hold 100% of its foreign subsidiaries’ capital in hard core CET1. A committee of the Senate’s Economics and Taxes Committee proposed a softer alternative: 50% CET1 and 50% in AT1 bonds. Earlier, the committee’s version appeared likely to prevail, but FDP members have now backed Caroni’s push to refer the issue to the Federal Council.
The FDP holds 12 of the 46 Senate seats; the centre‑right Mitte faction has 15 seats. Mitte lawmaker Fabio Regazzi said he doubts the FDP motion will gain a majority, describing the outcome as "fluid" with several possible results.
