UBS Weighs U.S. Move as Swiss Regulators Propose Large Capital Hike

UBS is exploring a potential relocation of its headquarters from Switzerland to the United States and is preparing contingency plans that could include buying or merging with a U.S. bank, according to people familiar with the matter.

The moves come after Swiss authorities proposed new capital requirements that would force UBS to boost its loss-absorbing capital by roughly $26 billion — a change the bank says would be disproportionate and would undermine its ability to compete globally. Executives including Chairman Colm Kelleher and Chief Executive Sergio Ermotti have held talks with U.S. officials as they draw up options, people close to the matter said.

UBS, a 162-year-old lender with a market value around $126 billion, said it "strongly disagrees with the extreme increase" in capital requirements and is working with Swiss regulators to seek a scale-back. Swiss authorities proposed the tougher rules amid concerns the country could face another banking crisis after UBS's 2023 takeover of Credit Suisse following that bank's run and solvency problems.

People familiar with the discussions said the bank has flagged the U.S. as a destination because it expects a more permissive regulatory environment and potential strategic partners among midsized American banks. U.S. officials, including people in the administration, have expressed interest in attracting large foreign firms to operate on U.S. soil as part of broader deregulation efforts, one Trump administration official with knowledge of the matter said.

Any move to the United States would carry regulatory trade-offs. U.S. deposit accounts are covered up to $250,000 by the Federal Deposit Insurance Corp., and large institutions deemed systemically important face enhanced supervision. At the same time, U.S. rules include a deposit cap that can restrict an acquiring bank's ability to grow if a transaction would result in control of more than 10% of total U.S. deposits — a threshold that has prevented the largest U.S. banks from pursuing some deals.

Analysts and people cited in reporting have identified mid-sized U.S. banks such as PNC Financial Services and Bank of New York Mellon as potential partners, noting their market values and scale could make them merger candidates. Those institutions have market capitalizations reported near $79 billion and $74 billion, respectively. UBS could also pursue other structural options if it moved its legal domicile or formed a holding company in the United States, the people said.

A UBS press representative declined to provide detail and would not deny meetings with U.S. officials. A spokeswoman for the Treasury secretary also declined to comment and would not confirm whether talks were under way, according to the people familiar with the discussions.

Swiss authorities have said the proposed capital changes are aimed at strengthening the resilience of the banking system and reducing the likelihood that a single institution could threaten financial stability. UBS argues the proposals are neither proportionate nor internationally aligned and has pushed for adjustments to the new requirements.

The bank's deliberations reflect tensions between national regulators seeking to guard against future crises and large global banks that say higher domestic requirements could put them at a competitive disadvantage on the world stage. UBS's consideration of relocating underscores how regulatory policy in one jurisdiction can prompt strategic shifts with international implications. The situation is fluid and discussions between UBS, Swiss regulators and potential U.S. counterparts are ongoing.