UBS Faces Stiff Capital Rules Amid Relocation Rumors

Switzerland's finance minister, Karin Keller-Sutter, has dismissed rumors that UBS might relocate its headquarters due to stricter capital rules. Speaking on the same day as Swiss National Bank President Martin Schlegel's support for a tougher regulatory regime, Keller-Sutter argued that such a move would be too costly and legally complicated.

The finance minister emphasized that UBS's business model relies heavily on Swiss reliability, rule of law, and political stability. She noted that the bank has already received CHF 6 billion in capital rule accommodations from the Federal Council, yet still branded the proposals as extreme.

Schlegel also expressed support for the stricter rules, stating that they represent the best solution from a financial stability standpoint. He highlighted that the government's conclusions on the banking crisis were targeted and appropriate, while emphasizing that the choice of legal domicile rests with UBS itself.