UBS told to tone down lobbying in dispute with Swiss government, FT reports

UBS told to tone down lobbying in dispute with Swiss government, FT reports

UBS Faces Pressure Over Capital Reforms and Leadership Profile

Swiss Lawmakers Urge UBS to Reduce Lobbying Efforts

March 3 (Reuters) - Swiss lawmakers have told UBS to tone down its lobbying campaign and reduce CEO Sergio Ermotti's profile in its dispute with the government over capital reforms, the Financial Times reported.

Dispute Over Capital Requirements

The country's largest bank has been at loggerheads with the Swiss government over the reforms - at the heart of which are proposals to make UBS fully capitalise its foreign subsidiaries - which could make it hold $24 billion in additional capital.

Background: UBS Acquisition of Credit Suisse

UBS acquired Credit Suisse after its old rival unravelled in 2023. The government then pledged to design new rules that aim to prevent a repeat of the crisis and ensure taxpayers would not be on the hook.

Leadership and CEO Sergio Ermotti's Role

Calls to Lower Ermotti's Public Profile

One person familiar with UBS's lobbying efforts told the FT that lowering Ermotti's public profile was not something the bank would consider.

UBS's Stance on CEO Tenure

Official Statement on Ermotti's Future

Sergio P. Ermotti will remain Group CEO until at least early 2027 and it is premature to speculate about the timing of Sergio stepping down, a UBS spokesperson said in a statement to Reuters.

Board's Plans for CEO Succession

UBS's board of directors plans to keep Ermotti on for longer than originally planned, the Swiss newspaper Neue Zuercher Zeitung reported last month.

Ermotti, who oversaw the emergency takeover of Credit Suisse, was slated to step down by the middle of 2027, sources have said.

Reporting Credits

(Reporting by Hyunsu Yim in Barcelona and Gursimran Kaur in Bengaluru; Editing by Tom Hogue, Edwina Gibbs and Louise Heavens)