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Swiss lawmakers propose weakening UBS CoCo capital rules

A parliamentary committee proposed diluting capital demands for UBS by letting the $170 bln bank count cheaper additional Tier 1 debt, aiming to make hybrid securities more useful in a crisis.

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By Liam ProudA parliamentary committee proposed diluting capital demands for UBS by allowing the $170 bln bank to use cheaper additional Tier 1 debt.

The same lawmakers want these hybrid securities to be more useful in a crisis.

Judging by Credit Suisse’s collapse, the reforms fail that test.Full…