UBS says government capital proposals would weaken bank and Swiss economy

UBS Tuesday said authorities proposals for Switzerland's biggest slope to clasp much superior would weaken the bank, the Swiss fiscal assemblage and the country's economy.

The slope said it supported the Swiss government's aims of learning lessons from the Credit Suisse situation and strengthening the Swiss regulatory framework.

"However, the presently projected superior measures bash not conscionable these criteria," UBS said successful its powerfully worded effect to a authorities consultation connected the measures.

As a effect of the Credit Suisse takeover initiated by the authorities and the projected adjustments, UBS would person to clasp astir $42 cardinal of further capital, the slope said.

Instead, the measures would enactment "put UBS astatine a important disadvantage successful an planetary comparison, weaken the Swiss system and the fiscal center, and instrumentality insufficient relationship of the lessons learned from the Credit Suisse crisis," the slope said.

UBS said it objected to the "extreme superior measures", which it said were neither "proportionate nor internationally aligned."

The authorities volition analyse the comments from the bank, manufacture bodies and governmental parties earlier deciding connected however to proceed.

Under a program to marque the slope little risky, the authorities successful June said UBS should nary longer beryllium capable to number bundle and deferred taxation assets arsenic portion of its required halfway capital.