UBS Explores Moving HQ Unless Swiss Reduce Capital Demand

UBS Group AG is examining the potential relocation of its headquarters if Switzerland sticks to its demand that the bank hold an extra $25 billion of capital, people familiar with the matter said.

Based on internal calculations showing that the bank’s key capital ratio would rise to about 20% in the harshest scenario from roughly 14% now, executives believe that remaining in Switzerland would make the Zurich-based firm uncompetitive relative to global rivals, the people said, asking not to be identified discussing confidential details.