Gruebel Says Tougher Capital Rules Will Hurt Growth, BZ Reports

Oswald Gruebel, former chief executive officer of UBS AG (UBSN), said that tougher capital rules for banks will hurt economic growth, Basler Zeitung reported.

“There won’t be any economic growth as long as banks have to shrink,” Gruebel told the Swiss newspaper in an interview published today. “Anything else is an illusion.”

Asked whether he expects a recession, Gruebel said that “we can muddle through because central banks are keeping short- term rates low. But on balance, we won’t have any growth for a long period of time,” according to the newspaper.

To contact the reporter on this story: Simone Meier in Zurich at smeier@bloomberg.net

To contact the editor responsible for this story: Paul Verschuur at pverschuur@bloomberg.net

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