Market Chatter: UBS Should Be Split Into Domestic, US Units, Former Swiss Minister Says

MT Newswires Live
Nov 25

UBS (UBS) should be split into separate domestic and US-centered units because Switzerland cannot shoulder the bank's risk alone, Bloomberg reported Sunday, citing former minister Christoph Blocher's interview with Sonntagszeitung.

Blocher suggested shareholders could receive one share in each company and said a breakup would be technically straightforward, Bloomberg reported.

He argued the state cannot absorb the risks tied to UBS's current structure, especially after its 2023 takeover of Credit Suisse, the news outlet reported.

UBS is currently facing political pressure as the Swiss government pushes for an additional $26 billion in capital to address the risks tied to its size, according to Bloomberg.

Blocher criticized the proposal, saying it fails to solve the systemic issue of being "Too Big to Fail" and highlighted differences in US and Swiss banking models, Bloomberg added.

UBS did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 36.81, Change: -0.26, Percent Change: -0.70

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