LONDON (Reuters) -Shares in Swiss bank UBS dropped more than 3% on Tuesday, with traders citing a media report that the lender was set to lose the first leg of a battle with the government over proposals to make it hold more capital.
Bloomberg, citing sources, reported late on Monday that the Swiss government was expected in June to unveil proposals that require UBS to increase its ability to cover losses in foreign subsidiaries to 100% of the capital held in those units.
UBS has been mounting a campaign to push back on the government’s proposals, arguing that requiring it to hold more capital would harm its competitiveness versus rivals elsewhere.
Shares in the company were down 3% at 27.16 francs by 0756 GMT, against a 0.68% rise in a European banking index. UBS stock has underperformed in 2025, dogged by uncertainty over the capital question, and is down more than 4% for the year, compared with a 30% rise in the broader banking index.
(Reporting by Tommy Reggiori Wilkes and Samuel Indyk; Editing by Amanda Cooper)
