UBS Compromise Plan Gets Backing of Largest Swiss Party

The largest party in Switzerland’s parliament backed a compromise proposal in the ongoing debate over UBS Group AG’s capital requirements, bringing the prospect of a deal to defuse the standoff a step closer.

In a consultation document seen by Bloomberg News, the Swiss People’s Party, SVP, said it supported a proposal circulated in December by a cross-party group of lawmakers, in which UBS could use convertible bonds known as AT1s to meet some of the new capital requirements. The suggestion — which sent UBS stock to a 17-year high — would substantially cut the need for new equity capital that the bank is facing.