UBS likely to lose first round of fight against capital hike, Bloomberg says

UBS (UBS) is heading for defeat in the first round of its effort to water down a Swiss government law that could force the bank to maintain as much as $25B in extra capital, sources told Bloomberg’s Bastian Benrath-Wright. In the bill the government will propose to parliament, the bank would be required to increase its ability to cover losses at foreign subsidiaries to 100% of the capital in those units, according to two people familiar with the matter. The bank is considering its options, including potentially moving its headquarters away from Switzerland, the sources said.