Foreign banks eye merger with UBS – report
At least eight international banks have indicated they may be open to discussions about a merger or combination with UBS, according to Swiss newspaper Blick.
The newspaper cited sources, with Morgan Stanley, Deutsche Bank, and Standard Chartered among the names reportedly being discussed by financial portals.
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UBS said it does not comment on speculation on the subject.
The reports come after Switzerland’s upper house backed stricter capital requirements.
Semafor reported that UBS executives had restarted discussions about reducing the bank’s exposure to Swiss regulation.
One option under consideration was a combination with a foreign bank, the news publication added.
Reuters reported that Swiss finance minister Karin Keller-Sutter said over the weekend that UBS was unlikely to leave the country, arguing that such a move would be more costly than complying with the new capital requirements and would create legal complications.
Members of parliament endorsed a measure requiring UBS to support its overseas subsidiaries with 90% Common Equity Tier 1 (CET 1) capital.
UBS said the 90% CET1 requirement for foreign participations would mean UBS holding about $16bn more in CET1 capital.
That would come on top of about $2bn in additional CET1 capital at UBS AG tied to ordinance-level steps announced earlier this year.
In May, UBS chief Sergio Ermotti said the bank needs a wider business base in the US while it prepares for all possible outcomes from the Swiss parliamentary debate over stricter capital requirements.
