UBS Faces $20 Billion Hike in Capital Needs Despite Rowback

The Swiss government outlined plans that would add $20 billion to UBS Group AG’s capital needs, even as it watered down some previously planned changes to the regulations.

Bern will continue to let UBS count deferred tax assets toward its regulatory capital and to write down software from that metric over a period of three years, the government said on Wednesday, easing previous proposals. That will reduce the impact UBS faces to a $4 billion reduction in CET1 capital, compared with an earlier estimate of $11 billion.