Keller-Sutter is unhappy with UBS lobbying
Keystone-SDA
Swiss finance minister Karin Keller-Sutter has complained of UBS bank putting parliamentarians under pressure ahead of a vote on banking regulation.
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Such strong lobbying by a private player is unusual in Switzerland, she said in an interview with the Blick newspaper.
“I hear from parliamentarians who fear that UBS could reduce donations to their party,” Keller-Sutter said.
“People can have different opinions. But it is not the usual style to take such a firm stance against our institutions.”
+ How to tame UBS without making the bank toothless
Parliament had dealt intensively with the Credit Suisse crisis, including a commission of enquiry. Many lawmakers agree with the government’s objectives, but feel under pressure, said Keller-Sutter.
Last week, the government sumbitted a bill to Parliament which stipulates that systemically important banks must fully cover the book value of their holdings in foreign subsidiaries with hard core capital.
According to the government, this will require UBS to significantly strengthen its Tier 1 capital by $20 billion.
The new rules are aimed at reducing the likelihood of liquidation proceedings or state intervention, as well as the risk to taxpayers.
+ Why a monster UBS scares Switzerland
The proposed banking regulation measures are the result of a thorough analysis of the collapse of Credit Suisse bank and takeover by UBS in 2023. The proposed new rules are aimed at closing existing loopholes.
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The Federal Council has fulfilled its responsibility, now it is parliament’s turn, said Keller-Suuter “At the end of the day, it is a question of which interests prevail: those of the taxpayers or those of UBS,” she said.
UBS has been resisting the tightening of capital regulations, which it describes as “disproportionate”. It has received support from banking and business associations as well as from the cantons where the banks are based and from some political parties.
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Swiss government wants UBS to increase its capital by $20 billion
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