, Columnist
UBS’s Capital Fears in Switzerland Have Arrived
The bank faces higher demands from its government after the Credit Suisse disaster, but it could have been worse.
UBS — not flying so high.
Photographer: Bloomberg/Bloomberg
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UBS Group AG had hoped that the Swiss government wouldn’t make onerous demands for more capital in the wake of its hyper-profitable rescue of Credit Suisse last year. But with a balance sheet now twice the size of Switzerland’s economy, the understandable nervousness among officials has fueled their desire for better defenses.
The Federal Council of Switzerland didn’t say exactly how much more capital UBS would need, but changes announced Wednesday seem likely to postpone or diminish the share buybacks that UBS investors are hoping for in the next few years.