Finance
UBS Offers Limits on Investment Bank to Ease Swiss Concern
UBS is seeking to defuse the Swiss government’s demand that it sharply increase its capital levels by as much as $25 billion.
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UBS Group AG executives have suggested that a permanent limit on the size of its investment bank be written into Swiss law to alleviate government concerns about a potential future rescue, a person familiar with the matter said.
A cap on one of the riskiest parts of the bank would lower the probability that future potential losses — such as the Archegos Capital hit that helped sink Credit Suisse — could endanger the whole group. The unit is already under a self-imposed limit of 25% of the lender’s balance sheet.