Switzerland mandates $26B capital boost for UBS, shares climb

The Swiss government proposed stricter capital rules for UBS following its acquisition of Credit Suisse, potentially requiring an additional $26 billion in core capital and full capitalization of foreign units, which UBS criticizes as extreme and competitive disadvantages. Shares rose after the announcement, and the reforms aim to strengthen regulation and liquidity access, with a transition period of 6-8 years. The proposals also include measures to bolster the Swiss financial regulator and may influence UBS's business model and location decisions.