Swiss government requires UBS to hold additional capital of $26 billion, imposing stricter rules on foreign subsidiaries

The Swiss government has proposed strict rules for UBS, forcing the bank to hold an additional $26 billion in core capital after taking over Credit Suisse. UBS will have 6-8 years to implement the requirements, which include fully capitalizing foreign subsidiaries. UBS executives consider the requirement excessive and harmful to competitiveness. The measures are designed to protect taxpayers and prevent future crises in the wake of the Credit Suisse collapse. The government suggests the regulations could be adjusted depending on UBS's reaction.