UBS Fights Capital Requirements Battle Amid JPMorgan Support

UBS is facing a heated regulatory battle over capital requirements in Switzerland. The bank's CEO Sergio Ermotti has publicly rejected a parliamentary proposal that would require foreign subsidiaries to be backed by 90% hard equity, calling it 'no real compromise'. This move came as UBS shares fell 3.5% to EUR 42.97.

JPMorgan analyst Kian Abouhossein remains bullish on the bank, maintaining an 'Overweight' rating with a price target of 50 Swiss francs. He cites the bank's earnings power and operational recovery as reasons for his optimism.

The proposed capital requirements have been met with opposition from within the Swiss financial sector, with the Swiss Bankers Association describing them as an 'extreme Swiss special path'. The association warns that overregulation could lead to a loss of competitiveness.