UBS Resists Regulatory Pressure to Shrink, Affirms Commitment to Switzerland

UBS CEO Sergio Ermotti pushed back against Swiss regulators' demands to reduce the bank's size, calling such a MOVE strategically unsound. "Shrinking the bank is not a strategy," Ermotti declared at a business conference, emphasizing UBS's reliance on its global reach for competitiveness. The bank remains locked in negotiations over June-proposed capital requirements that could force it to allocate an additional $24 billion to foreign subsidiaries.

Despite reports of contingency plans exploring headquarters relocation—including a potential shift to London—Ermotti reaffirmed UBS's Swiss roots. Analysts warn the proposed rules could weaken the bank's defenses against foreign takeovers while constraining shareholder returns. The standoff highlights the tension between national financial stability concerns and global banking ambitions.