UBS Leaving Switzerland Is Edging Closer to Reality

Money can’t buy you love and right now no one knows that better than UBS Group AG. Since the Swiss bank helpfully rescued its cockroach-riddled rival Credit Suisse in a state-brokered emergency takeover, its reward has been government plans to whack it with punishing new capital rules and a lagging stock price.

On top of that, other misfortunes are piling up. Losses from the bankruptcy of autos-supplier First Brands hit its hedge fund arm and a court denied its efforts to recover money linked to the earlier failure of Greensill Capital. Yet the worst threats come from the Swiss regulatory overhaul and another court ruling that could reverse the writedown of $16.5 billion of Credit Suisse bonds.