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Self-Help or Self-Sabotage? Activist’s Proposal for UBS to Leave Switzerland Risks Spiking Costs

In June, the Swiss government laid out a proposal to compel UBS to add 26billiontoitsreserves,andlastweek,SwissparliamentariansclearedthewayforthecountrysFederalCounciltodirectlyimpose26 billion to its reserves, and last week, Swiss parliamentarians cleared the way for the country’s Federal Council to directly impose 11 billion worth of that. UBS, to no one’s surprise, is lobbying policymakers to soften their position, arguing the bank will be left at a competitive disadvantage. An activist investor with a 1.4% stake in the bank is calling for a drastic bargaining tactic: Prepare to up and leave Switzerland, possi ...