Report: UBS headquarters considers moving to the United States in protest against Swiss regulators' "extreme" $26 billion capital requirement

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UBS Group Chairman Colm Kelleher and US Treasury Secretary Bessent have recently held private discussions about the possibility of relocating the headquarters of the Swiss banking giant to the United States.

On November 17, according to media reports citing three people familiar with the matter, Kelleher and Bessent have held talks in recent months regarding specific plans for UBS's relocation to the US. The Trump administration has an open attitude toward accepting one of Switzerland's most important assets.

This meeting is one of Kelleher’s ongoing efforts to pressure the Swiss government. The Swiss government's proposed new capital requirements would force UBS to hold an additional $26 billion in capital, a demand that UBS calls "extreme" and disproportionate. So far, both public and private lobbying efforts by UBS management have had little effect.

Capital Regulation Sparks Standoff

The Swiss government insists on implementing stricter capital requirements to avoid another collapse like Credit Suisse. In 2023, UBS acquired its rival in a government-led rescue operation.

UBS argues that the new requirements exceed global industry standards and will weaken its international competitiveness. In a statement, the bank said:

As we have repeatedly stated, we wish to continue successfully operating in Switzerland as a global bank.

According to reports citing informed sources, UBS executives hope to keep the headquarters in Switzerland provided they can convince the Swiss parliament to lessen the impact of the proposed changes. However, they say they are willing to consider leaving if the proposal is not amended.

Activist investor Cevian Capital, which holds a large stake in UBS, stated in September last year that Switzerland’s proposed capital changes would make it "unfeasible" for large international banks to operate in the country.

The largest specialist activist investment firm in Europe added, if the proposal is not softened, UBS will have "no other realistic option" but to leave Switzerland.

Transatlantic Regulatory Divergence

As Switzerland tightens capital regulations, the United States is pursuing deregulation in several economic sectors to promote growth.

The Trump administration has made clear its intent to loosen banking regulations. Bessent, citing the growth of private credit, has said the banking industry is "overly constrained" and advocates minimizing capital and liquidity rules to free up more lending capacity.

Previously, US regulators were cautious about large banks relocating to the US, as taxpayer-funded bank bailouts during the financial crisis triggered public anger. But the Trump administration is more open to the idea of attracting European financial institutions.

The Trump administration’s move to loosen banking rules has caused concern among European regulators, who believe that US deregulation gives American banks an advantage over their transatlantic rivals and poses risks to global financial stability.

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