UBS CEO says Switzerland should not “overshoot” with capital demands

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UBS CEO Sergio Ermotti has responded to criticism that the bank has grown too large for Switzerland, and has dismissed calls for it to increase its capital reserves. Ermotti, who returned to UBS last year to oversee the integration of Credit Suisse, stated that he is in agreement with most of the government’s proposals to improve Swiss banking safety. However, he disagrees with the plan for UBS to increase its capital reserves.

Ermotti highlighted that UBS was already allocating an additional $20 billion in capital through its acquisition of Credit Suisse. He emphasized that part of the planned $13 billion in cost savings would be reinvested to strengthen the bank’s processes and businesses following the takeover.

Investors have responded positively to the takeover, driving UBS’s shares higher. The combined group is seen as having significant potential due to low acquisition costs, a substantial increase in assets, and a relatively smooth integration process thus far.

Source: Reuters

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