UBS, Credit Suisse to Set Aside $68 Billion?

Monday, 7 Jul 2008 | 12:52 PM ET

Swiss authorities could require UBS and Credit Suisse to set aside an additional 70 billion Swiss francs ($68.29 billion) in capital, a newspaper reported on Sunday, citing lawmakers.

UBS, Credit Suisse to Raise More?
UBS and Credit Suisse could be forced to raise additional capital by the Swiss authorities, according to reports Monday. Hans Kaufmann, member of parliament for the SVP, spoke to CNBC.

"40 billion for UBS, 30 billion francs for CS," parliamentarian Hans Kaufmann told Swiss weekly Sonntag, referring to the additional capital the banks would have to put aside under the proposal.

Switzerland's top banking watchdog, the EBK, has told Reuters it plans to introduce more stringent capital rules by October to restrain UBS and Credit Suisse, so they do not run into the same trouble again that made UBS the biggest European casualty of the global financial turmoil.

A spokesman for the EBK, Alain Bichsel, told Sonntag that a sum had been proposed and it would make details known in the autumn.

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