UBS hit by proposed $20B capital increase by Switzerland, FT reports

The Swiss government has proposed requiring UBS (UBS) to raise about $20B in additional capital, reaffirming key “too big to fail” reforms prompted by the Credit Suisse collapse, The Financial Times’ Mercedes Ruehl and Simon Foy report. While it maintained the requirement to fully capitalize UBS’s foreign subsidiaries, it softened some measures related to the overall quality of the bank’s capital base after public consultation. “The solution proposed by the Federal Council is more moderate than planned, due to the results of the consultation procedure,” it said. “In terms of capital requirements, the result is thus a balanced overall package that takes account of the comments received.”