UBS Shares Jump 4.7% as Swiss Government Softens Capital Rules
UBS Group AG rallied 4.72% to close at $40.64 after Swiss regulators signaled leniency on proposed banking reforms. The adjustments—targeting deferred tax assets and software valuations—could spare the lender $11 billion of a potential $24 billion capital raise.
The regulatory pivot follows UBS's warnings that stricter requirements WOULD impair operations. Market reaction was immediate, with trading volume spiking to 150% of the 30-day average. Analysts note the decision preserves UBS's competitive position amid European banking consolidation.
Zurich's intervention highlights the delicate balance between financial stability and industry competitiveness. The revised framework now moves to parliamentary debate, with final implementation expected by Q1 2025.
