UBS (UBS) had engaged with Nordea Bank over exiting Switzerland or potentially facing a new law that could compel it to hold up to $16 billion in additional equity or CET1 capital, Bloomberg reported Friday, citing unnamed people familiar with the matter.

UBS executives discussed the issue with counterparts at the Finnish bank that left Stockholm for Helsinki nearly a decade ago, sources told the media outlet.

Some at UBS see a combination with Morgan Stanley (MS) or another major US bank as an appealing option to relocate, but the bank doesn't have any imminent merger plans and is awaiting more clarity on the capital debate, people told Bloomberg.

UBS and Nordea did not immediately respond to a request for comment from MT Newswires.

(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.)

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