The Swiss government’s new capital rules have prompted UBS to evaluate relocating its operations to the United States. The Swiss bank’s senior executives have started talks with U.S. administration officials to develop strategies for potential business changes. The company explores two main options which involve buying a U.S. bank or uniting with an existing financial organization.
The Swiss government introduced new capital requirements for UBS which demand the bank to maintain $26 billion more core capital after acquiring Credit Suisse. UBS CEO Sergio Ermotti declared to Bloomberg TV that the bank plans to stay in Switzerland but considers the new capital requirements to be both punitive and excessive. The company leader declared that protecting shareholders and stakeholders stands as the organization’s main objective.
Ermotti expressed doubt about specific relocation plans but avoided making any definitive statements at this time. The company’s insiders suggest that London stands as a potential alternative site for relocating operations. The company informed its senior personnel that the possibility of moving headquarters became more significant after the government introduced stricter rules.
The decision will transform UBS’s worldwide business approach and impact its position as Europe’s leading financial institution.
