Swiss Government Bets on UBS Climb-Down in Capital Deadlock

The Swiss government is entering the next stage of the political process to set new capital requirements for UBS Group AG, expecting that the bank will ultimately be forced to accept most of its demands.

As it prepares a draft law this year to go before parliament in 2027, officials have concluded that the impact of the new rules will be manageable for UBS and that the political will for stronger safeguards against potential future crises will outweigh concerns around the impact on UBS’s competitiveness, according to people familiar with the government’s thinking.