‘Lose-lose situation': New Swiss bank laws could derail UBS' challenge to Wall Street giants

In a published plan, the Swiss government proposed measures to tighten regulations on banks considered “too big to fail.” This comes a year after Credit Suisse was forced into an emergency rescue by UBS. With UBS’s balance sheet now double Switzerland’s annual GDP, the banking sector and the economy are facing increased scrutiny. The government’s proposed measures aim to give more powers to the Swiss Financial Market Supervisory Authority and strengthen the financial position of subsidiaries. However, some argue that these regulations may limit UBS’s potential to compete with Wall Street banks.