UBS Lobby Campaign Is Noisy But Futile, Swiss Finance Chief Says

(Bloomberg) — Switzerland’s government won’t be swayed by UBS Group AG’s lobby campaign against stricter capital requirements for the nation’s biggest bank, according to Finance Minister Karin Keller-Sutter.

“UBS’s lobbying is highly visible and unmistakable,” she told public broadcaster SRF on Tuesday. “It’s obviously also resonating in various places. But once again: the Federal Council can’t allow itself to be impressed by lobbying, but must look after the interests of taxpayers.”

The Swiss government’s “single target” is to ensure UBS can be wound down in case of a crisis, Keller-Sutter said, adding that this means that the systemically relevant parts for Switzerland can be separated from the rest of the bank.

To improve resolvability, Switzerland is discussing a proposal to impose tougher capital requirements on UBS, whose assets after the takeover of Credit Suisse are twice the size of the national economy. Specifically, a requirement to fully back foreign units with capital at the parent bank is being discussed, which could ultimately lead to an additional capital need of as much as a $25 billion. The government is expected to present parliament with legislation detailing new rules in May.

Keller-Sutter said that she’s in regular contact with UBS Chairman Colm Kelleher for updates on the integration of the former rival and on regulatory needs. She stressed that due to their roles they have “different interests” in the debate, which is “normal and legitimate.” 

She also said that the government doesn’t support a proposal to cap remuneration for bankers. One chamber of Switzerland’s parliament had backed such a proposal last week, envisioning an upper limit of 3 million to 5 million francs per year ($3.5 million to 6 million). Still, Keller-Sutter said that she’s aware of concerns with respect to the bonuses Credit Suisse’s management received.  

“I understand the frustration that you can be responsible for the downfall of a bank but are not held accountable and can ultimately keep the money you got,” she said.

©2025 Bloomberg L.P.