Key facts
- Swiss government analyzed UBS relocation due to stricter capital rules.
- US relocation could involve expensive restructuring and similar capital absorption.
- UK move would require additional capital for UBS's Swiss operations.
- New Swiss rules could require UBS to raise $18 billion in capital.
- Up to 12,000 UBS jobs in Switzerland could be lost if the bank relocates.
The Swiss government has internally assessed the feasibility and implications of UBS relocating its operations abroad to avoid stricter capital requirements being drafted in response to Credit Suisse's collapse. The analysis, reviewed by Reuters, indicates that moving to the US or UK would present significant legal and financial challenges, potentially matching the costs of the proposed Swiss capital increases. Officials are considering these measures seriously, with a parliamentary committee having requested the review. UBS, Switzerland's last global bank, has stated the new rules would harm its competitiveness, and its chairman has suggested it might reconsider its Swiss base if regulations become too harsh. The finance ministry, however, maintains the proposed measures are effective and manageable.