UBS Chief Executive Sergio Ermotti has expressed concerns regarding the Swiss government’s proposals for more stringent capital requirements following the collapse and subsequent acquisition of Credit Suisse. Ermotti argues that the downfall of Credit Suisse was driven by a crisis of confidence and liquidity rather than a lack of capital. He cautioned that imposing excessive regulatory burdens could undermine the competitiveness of Switzerland as a global financial center and ultimately increase costs for consumers. UBS maintains that existing international standards should be the primary focus for regulatory stability and economic growth.
The Swiss government is considering tougher capital rules for UBS to prevent future banking crises following the collapse of Credit Suisse.
Sergio Ermotti asserts that Credit Suisse met all regulatory capital requirements prior to its failure, identifying liquidity and management as the core issues.
The CEO warns that excessive capital requirements could reduce the bank’s ability to support the economy through lending.
There are concerns that “Swiss-finish” regulations, which go beyond international standards, could make Swiss banks less competitive globally.
Ermotti emphasized the need for a global level playing field in banking regulation to maintain Switzerland’s status as a financial hub.
UBS is currently focused on the multi-year integration of Credit Suisse while working to reduce the risk profile of the combined entity.
The bank argues that effective supervision and liquidity management are more critical for stability than simply increasing capital buffers.
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12 COMMENTS
“I don’t see why you should impose a speed limit to all drivers because one driver who was authorized to go over the limit was going well over the speed limit.” That doesn’t feel like a very well thought out analogy if you’re trying to argue that the regulation is not necessary.
"The Bank needs to stay profitable" This is it huh. Real genius we got here. All I hear is we need to take more money from people to remain profitable.
Like a colonel in the battle, the cool and collected Mr Ermotti kept his calm and steered the ship towards stable waters. Quite impressive, and rare nowadays.
I have the feeling that UBS management is putting the bank at risk. The education system in Switzerland is very different when comparing the Gymnasium Matura and the Berufsmatura, with the first being much more demanding than the second. Why do Swiss people not seem to value education enough? Is there really no one who graduated from ETH or another elite university who could take responsibility for fixing the bank?
Why do so many Swiss people not strive for elite education? I will never understand.
I was quite excited to tune in for this interview but the incessant interruption was painful to watch. "Let's talk avout you" he proceeds to do so and she cuts him off. And then that set the tone of the entire video.
“I don’t see why you should impose a speed limit to all drivers because one driver who was authorized to go over the limit was going well over the speed limit.” That doesn’t feel like a very well thought out analogy if you’re trying to argue that the regulation is not necessary.
Stay independent creates benefits too
15:42 oh god
😊
Greece introduced lowering taxes depending on the number of kids you have -odr?
"The Bank needs to stay profitable" This is it huh. Real genius we got here. All I hear is we need to take more money from people to remain profitable.
total softball interview. Gives totally vague and superficial answers about the capital requirements.
Like a colonel in the battle, the cool and collected Mr Ermotti kept his calm and steered the ship towards stable waters. Quite impressive, and rare nowadays.
for god sake, can the interviewer stop interupting when he is speaking!!!!!!!!!!? this interviewer is SO F BAD!
I have the feeling that UBS management is putting the bank at risk. The education system in Switzerland is very different when comparing the Gymnasium Matura and the Berufsmatura, with the first being much more demanding than the second. Why do Swiss people not seem to value education enough? Is there really no one who graduated from ETH or another elite university who could take responsibility for fixing the bank?
Why do so many Swiss people not strive for elite education? I will never understand.
I was quite excited to tune in for this interview but the incessant interruption was painful to watch. "Let's talk avout you" he proceeds to do so and she cuts him off. And then that set the tone of the entire video.
Dear FT, The Interviewer made, in my view, too many unnecessary interruptions. It was painful to watch. Very bad interview.