UBS CEO Defends Against Criticism Following Credit Suisse Takeover

According to Reuters in Lucerne, Switzerland, June 18, UBS CEO Sergio Ermotti addressed concerns on Tuesday regarding potential stricter regulations for the bank following its 2023 acquisition of Credit Suisse. Speaking at an event at the Institute for Swiss Economic Policy in Lucerne, Ermotti criticized what he described as "fear" and "populist" critiques, suggesting that they undermine both the bank and Switzerland's economic prospects.

The Swiss government and regulators are currently considering plans to increase the capital requirements for UBS. In response, Ermotti emphasized the bank's importance as a significant tax revenue source and a "beacon" for the Swiss financial sector. He argued that the failure of Credit Suisse should not lead to penalties for UBS due to its global significance.

"The demise of Credit Suisse should not be taken to mean that the only remaining major bank has to pay the price and should be penalized for its global significance," Ermotti stated.

In recent months, Ermotti has opposed the perception that UBS is too large for Switzerland and has resisted the push for more stringent regulatory measures. This comes amid increasing scrutiny from both regulatory and political spheres as Switzerland seeks safeguards against the potential collapse of a bank with a balance sheet twice the size of its economy.

Ermotti clarified the impact of the Credit Suisse acquisition on UBS's balance sheet, noting, "At the end of the integration process, UBS's balance sheet will be around 40% larger than before the acquisition of Credit Suisse, not twice as large."