UBS is preparing to pack its bags. The 162-year-old banking giant is deep in talks about ditching Zurich and moving its headquarters to the United States, according to The Post.
This comes as the bank rejects a new proposal from Swiss regulators demanding it cough up an extra $26 billion in capital, a requirement the bank says would wreck its ability to stay competitive, Cryptopolitan reported.
Chairman Colm Kelleher and CEO Sergio Ermotti have already made moves. The two recently held meetings with President Trump’s team in Washington to explore options. Nothing is finalized yet, but insiders say UBS is also considering acquiring a US bank to plant deeper roots in the country.
UBS targets US banks as Switzerland tightens grip
The Swiss government came up with the new capital rule after UBS bailed out its longtime rival, Credit Suisse, in 2023. That rescue followed a run on Credit Suisse’s deposits and fears of collapse.
Now, Switzerland says tougher regulations are necessary to prevent another crisis. UBS says the new rule is overkill.
“The changes would result in capital requirements that are neither proportionate nor internationally aligned,” UBS said in a public statement. They confirmed they’re still negotiating with Swiss authorities to roll back the increase, but the tone is clear. These guys are ready to leave if they don’t get what they want.
Sergio and Colm are eyeing the US for more than just better treatment. The Trump administration is offering deregulation as bait. One official inside the White House, speaking to The Post, said, “This is what we want,” when asked about foreign banks like UBS relocating to the US. Treasury Secretary Scott Bessent’s office wouldn’t comment, but also didn’t deny the talks.
UBS, valued at $126 billion, is scouting midsize American banks for potential deals. PNC Financial, based in Pittsburgh, is one option with a $79 billion valuation.
Bank of New York, worth around $74 billion, is another possibility. What makes this interesting is that UBS can do something JPMorgan Chase can’t; make a big acquisition without tripping over the US deposit cap.
The deposit cap stops any US bank from holding more than 10% of total deposits after an acquisition. JPMorgan has hit that ceiling. But UBS, as a foreign bank, isn’t subject to it. That gives them an open lane to grow fast if they set up shop in the US.
Trump administration opens doors as UBS pushes back at home
UBS’s meetings with Trump’s team were not just about potential deals. The bigger goal is escaping what they see as suffocating rules back home. The Swiss proposal would force UBS to increase its capital buffer, the money it holds in reserve in case things go wrong, by a staggering $26 billion.
Deposits in the US are insured up to $250,000 per account by the Federal Deposit Insurance Corporation. Big banks are labeled “systemically important” and face stricter regulation, a law born out of the 2008 financial crisis. But even with that, UBS argues that US oversight is more manageable compared to what Swiss regulators want.
UBS is already classified as “systemically important” in Switzerland, which means they’re under more intense scrutiny. But with this new rule, Swiss oversight would go beyond what the US demands. That’s one reason UBS is seriously looking at moving. Less pressure, more flexibility.
So far, UBS has not confirmed any final decisions. But they aren’t denying the meetings, either. Their press rep had no comment when asked about conversations with Trump officials. Scott’s office also refused to discuss it. But no one’s pushing back on the facts.
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Source: https://www.cryptopolitan.com/ubs-execs-meet-trump-team-us-relocation/
