UBS: Private Talks Reveal Potential Move to the US
UBS’s leadership has privately discussed relocating the bank’s global headquarters to the US, a move that would mark one of the most consequential shifts in European banking history.
Private discussions between UBS chair Colm Kelleher and US Treasury secretary Scott Bessent reflect the escalating pressure on Switzerland’s biggest lender as the government pushes forward with more stringent capital demands, the British newspaper «Financial Times» (behind paywall) reported on Monday.
Kelleher and Bessent explored what a redomiciling to the US could look like for UBS, with the Trump administration reportedly open to welcoming the Swiss lender.
According to people familiar with the discussions, the talks form part of a broader effort by UBS to press Bern to soften proposed rules that would force the bank to hold an additional 26 billion dollars in capital requirements, the bank has described as «extreme» and internationally uncompetitive.
Tougher Swiss Rules Stir Market Concerns
The uncertainty around the capital overhaul has already weighed on UBS’s share price. Public and private lobbying by top management has so far brought little relief.
The bank argues that Switzerland’s proposed standards exceed those applied to global peers and would impair its ability to compete internationally.
Prevent Another Credit Suisse
Swiss authorities have insisted that stronger safeguards are necessary to prevent a repeat of the Credit Suisse collapse. UBS absorbed its struggling rival in 2023 through a state-engineered rescue, a deal that intensified scrutiny of systemic stability.
The US Treasury declined to comment on the private talks. Historically, American regulators have been reluctant to attract foreign banking giants due to political sensitivities around bailouts.
Yet the Trump administration is viewed as more receptive, part of a broader strategy to lure European financial institutions as the US pursues deregulation to spur economic growth.
UBS Still Prefers Switzerland – for Now
Despite the high-profile conversations, UBS executives remain intent on keeping the headquarters in Zurich – but only if Swiss lawmakers agree to ease the capital package.
Internally, leaders believe they have a fiduciary duty to evaluate all strategic alternatives, including leaving Switzerland if regulatory conditions become untenable.
Activist Investor Adds Fuel to the Fire
Cevian Capital, Europe’s largest activist investor and a significant UBS shareholder, warned in September that the Swiss capital reform would make it «not viable» to run a global bank from Switzerland.
It argued that UBS would have «no other realistic option» but to move if the measures were not revised. The intervention intensified speculation that the relocation threat is more than mere negotiating theatre.
Diverging Regulatory Philosophies
The debate comes as Switzerland pushes for stricter capital buffers while the US moves in the opposite direction. Washington has signalled its intention to loosen rules governing lenders, citing the rapid expansion of private credit markets as evidence that banks are «too tightly constrained».
European officials, meanwhile, worry that US deregulation will tilt the competitive playing field and introduce new systemic vulnerabilities.
Strategic Gambit with Global Implications
Whether UBS ultimately moves its headquarters remains uncertain. What is clear is that the bank is leveraging all available tools – political, regulatory, and strategic – to secure a more favourable operating environment.
The outcome will shape not only Switzerland’s standing as a global banking centre, but also the future balance of power within international finance.
