BREAKING NEWS
THE SWISS GOVERNMENT SAYS UBS MAY HAVE TO FIND AS MUCH AS $27 BILLION TO ABSORB POTENTIAL LOSSES AND PROTECT TAXPAYERS FROM EVER HAVING TO BAIL OUT A MAJOR BANK.
I said the movie was not over.
— Gold Telegraph ⚡ (@GoldTelegraph_) April 26, 2024
A year after the failure of Credit Suisse, the Swiss government says UBS may have to find as much as $27 billion to absorb potential losses and protect taxpayers from ever having to bail out a major bank.
Now, the giant Swiss lender is hitting back, saying its finances are robust and warning that the proposal could harm Switzerland’s standing as a global financial center.
Speaking at the bank’s annual shareholder meeting Wednesday, UBS chairman Colm Kelleher said he was “seriously concerned” about current discussions that could force the bank to hold much more cash and other liquid assets. “Additional capital is the wrong remedy,” he said.
“There can be no regulatory solution for a broken business model,” he continued, referring to Credit Suisse. UBS bought its stricken rival last March in a government-orchestrated rescue aimed at preventing a global financial crisis.
The deal has proved controversial in Switzerland, which is now home to a bank with assets almost double the size of its annual economic output.
Kelleher argued the deal “reinforced Switzerland’s position as a leader in wealth management.”
www.cnn.com/2024/04/24/investing/ubs-switzerland-too-big-to-fail/index.html