Bern: Switzerland is preparing to soften sections of a controversial regulatory package that would have forced UBS to raise tens of billions of dollars in additional capital, according to sources familiar with ongoing government deliberations. The shift signals a significant recalibration by Swiss authorities, who have been under pressure from political leaders, industry stakeholders, and global financial observers concerned about the potential economic fallout of excessively stringent rules.

According to senior government and industry sources, Swiss officials are now drafting changes that would “water down” specific components of the new capital regime particularly those affecting how certain balance-sheet items are valued. The original proposal required UBS to apply tougher valuations

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