Latest news with #tooBigToFail
Bloomberg
3 days ago
- Business
- Bloomberg
UBS's $26 Billion Capital Hit Isn't Quite as Bad as It Seems
The $26 billion headline capital charge to protect Swiss taxpayers from the risk that UBS Group AG ever fails is worse than anyone expected. And yet UBS's shares jumped as much as 8% on the news Friday – what gives? It's not that investors now know the costs of Switzerland's beefed-up 'too big to fail' rules, which follow Credit Suisse's 2023 collapse. There's a lot of uncertainty about the draft law's final form. Most likely UBS shares have jumped because investor judge that the final bill will be lower – and because they know it's not due to be paid in full until 2034 at the earliest.
Bloomberg
12-05-2025
- Business
- Bloomberg
UBS and Switzerland Should Play Their Game of Chicken Nicely
A game of chicken between UBS Group AG and Swiss politicians is coming. The government is due to unveil a draft law to beef up too-big-to-fail rules in early June, which threatens a big hike in capital for Switzerland's only major global bank. The bigger the headline number, the more extreme the reaction from UBS is likely to be. That could mean claims it will have to move country or break itself up — either of which would leave one of the world's major banking centers without a serious player of its own. In reality, both sides will likely swerve. UBS needs Switzerland as much as the country needs it. Also, the bank has more time and more leeway to deal with some of the stiffer demands likely to be made than it's (understandably) willing to acknowledge.
