UBS IB Balance Sheet Set to take a Hit
Looks like CEO Sergio is not happy…
CEO Sergio Ermotti said on Tuesday a proposal to make the bank back its foreign units with 90% Common Equity Tier 1 capital instead of 100% CET1 is not really a compromise, urging the country to pursue a more moderate course.
"The current proposal from the Federal Council at 100% and the 90% is de facto the same," Ermotti said, characterising both options as a distortion of UBS's competitive position. "We don't think that this is an acceptable outcome."
What does TruthToLight think about this?
Fake news! (Words words) You all are racist! (Words words) Everything including news outlets are all in on the big conspiracy! (Words words) I’m so smart look at me self congratulating my arguments!
I think you summarized a takeaway accurately this time.
Congratulations.
Did you find it difficult to do that?
Translation: "I am an undergrad, I do not know what a CET1 Ratio is, thus I am forced to concede this point."
UBS IB is so lowly regarded they are all pretty much back office loan processors
the stakes here are bigger than the headline. 100% cet1 backing on foreign units basically traps tens of billions in switzerland, and the obvious levers after that are shrinking the ib (the most foreign, most capital-hungry part) and making noise about moving the hq. for people on the desk it's less a markets story and more a headcount-and-bonus-pool story over the next few years
Congrats on UBS!
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