UBS, Credit Suisse Investors Seen Taking Hit From Leverage Rule
- Switzerland said to set leverage ratio at 5% in line with U.S.
- UBS estimated 1 percentage point increase to cost $1 billion
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Swiss demands for bigger capital cushions may force UBS Group AG to postpone higher payouts and push Credit Suisse Group AG into a share sale after regulators rebuffed banks’ pleas for more lenient terms.
Switzerland’s finance ministry is set to demand that the country’s biggest banks hold capital of about 5 percent of total assets, in line with the U.S. leverage ratio for its biggest banks and above the 3 percent globally agreed requirement, according to people briefed on the deliberations, who asked not to be identified because the talks aren’t public.