“The size of UBS requires special regulations,” says the CEO at the Swiss Media Forum in Lucerne. According to him, a collapse of the bank should not have consequences on the Swiss economy.
UBS boss Sergio Ermotti recognized Thursday that certain adaptations to the regulatory framework are necessary to protect taxpayers in the event of problems at the bank. However, in its current form, it is “too big to fail”, he declared at the Swiss Media Forum in Lucerne.
Due to its size and its links with the financial system and the national economy, UBS cannot therefore be abandoned by the State, underlined Sergio Ermotti.
However, “we are aware of our responsibility,” the three-key bank’s chief executive said at the annual media conference, adding that he agreed that some adaptations to the regulatory framework were necessary. “These must be designed in such a way that no state or taxpayer has to bail us out in the event of a problem.”
“The size of UBS requires special regulation,” Mr. Ermotti continued. According to him, a collapse of the bank should not have consequences on the Swiss economy.
The media recently reported on an emerging feud between the CEO of UBS and Federal Councilor Karin Keller-Sutter, the latter wanting stricter capital requirements for UBS. UBS may have to build up additional capital of around 15 to 25 billion francs, according to the head of the Federal Department of Finance (FDF).
Mr Ermotti did not address the issue of equity, but mentioned the matter indirectly: “We agree with 80 to 90% of the 22 measures proposed by the Federal Council in its ‘TBTF report’.” , he said.
The UBS boss called for “strong and credible” regulation. “This does not mean that we automatically need more regulation,” he said.
