Swiss banking giant UBS is preparing a Plan B under which it would move its headquarters out of Switzerland if the country’s politicians proceed with proposals for tighter capital requirements. The Wall Street Journal reports this, citing sources familiar with the matter.
Among the alternatives are buying a US financial institution, merging with a European rival or selling the bank to a US player. UBS has also been contacted by potential US business partners, but no active negotiations are under way.
The proposed capital requirements, which are being introduced in the wake of Credit Suisse’s collapse in 2023, would, according to UBS, entail costs of around 16 billion dollars.
Shareholders Cevian Capital and Artisan Partners are advocating a move, while Swiss Finance Minister Karin Keller-Sutter believes it would be more expensive for the bank to leave the country than to stay.
