UBS chair discussed moving headquarters to US

The UBS Group AG chairman and US Treasury Secretary Scott Bessent have discussed the possibility of moving the Swiss banking giant's headquarters to the US, the Financial Times reported Monday, reviving a long-running rumour.

A standoff between UBS and the Swiss government over a move to impose stricter banking regulations has fuelled rumours for months that Switzerland's biggest bank is mulling moving its headquarters out of the wealthy Alpine nation.

According to the Financial Times, UBS chairman Colm Kelleher and Bessent "held talks in recent months about what a move to the US would look like for the lender".

The administration of US President Donald Trump is "receptive to welcoming one of Switzerland's most prized assets", the British daily reported, citing three people familiar with the conversation.

"The talks with Bessent are part of an ongoing effort by Kelleher to put pressure on the Swiss government," it added.

Drawing lessons from the implosion of what was once Switzerland's second-largest bank Credit Suisse, Bern is seeking to oblige UBS to strengthen its capital base in overseas subsidiaries.

The measure, seen as a safeguard against a collapse that could destabilise the global economy, would require UBS to set aside an additional USD26 billion in capital – something the bank has decried as "extreme".

Contacted by AFP, UBS declined to comment on the FT report, but reiterated its stance that it wants "to continue to operate successfully as a global bank out of Switzerland".

UBS bought out Credit Suisse for USD3.25 billion in March 2023, under strong pressure from Swiss authorities as its former competitor was teetering on the verge of collapse.

The quickfire takeover created a behemoth that the government has been scrambling to regulate to limit the risks to the Swiss economy.

While the bank has agreed with most of the proposed measures, it strongly opposes the proposal concerning its foreign subsidiaries, arguing that its competitiveness would be severely undermined.

In September, the New York Post had already reported on a meeting with representatives of the Trump administration regarding a possible relocation of the headquarters should the Swiss government refuse to soften its proposal.