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Ermotti says 90% CET1 proposal is no real compromise

UBS CEO Sergio Ermotti said the Swiss proposal to back foreign units with 90% Common Equity Tier 1 capital, instead of 100%, is not really a compromise and urged Switzerland to pursue a more moderate course.

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UBS CEO Sergio Ermotti said on Tuesday that a proposal to require the bank to back its foreign units with 90% Common Equity Tier 1 capital, rather than 100% CET1, is not really a compromise. He urged Switzerland to take a more moderate approach. “The current proposal from the Federal Council at 100% and the…”