Swiss Government Executive Order to Set UBS Bill Debate Tone, Lawmaker Says

A decision by the Swiss government next week to soften some planned new capital rules for UBS Group AG would buy it goodwill with lawmakers about to debate a law set to have an even bigger impact on the lender, according to a key Swiss lawmaker.

The government, or Federal Council, is expected to lay down an executive order next Wednesday that will define what assets UBS needs to exclude from its CET1 capital, a key measure of capital strength. The bank has estimated that the current proposal would force it to add about $3 billion in fresh capital to Swiss-based unit UBS AG.