UBS Says European Asset Sales Difficult Without Rules

European governments may struggle to sell assets such as stakes in lenders before new regulations are in place to govern the banking industry, John Fraser, chief executive officer at UBS Global Asset Management, said.

European governments including Germany and the U.K. stepped in to support banks by buying or increasing stakes in their lenders after the global financial crisis stalled lending and banks had to write-off debt. The U.K. government is pressuring banks to restrict bonuses and increase commercial lending as it implements the biggest cuts to expenditure since World War II.