UBS Share Buyback Fails to Impress Amid Regulatory Fears

Despite completing a massive $3 billion share repurchase initiative, UBS shares are facing significant downward pressure as investors focus on a looming regulatory confrontation with Swiss authorities. The completion of the capital return program, which would typically boost shareholder value, is being entirely overshadowed by concerns that the bank could be forced to hold billions in additional capital.

The primary driver behind the negative sentiment stems from Bern, where discussions are intensifying around substantially stricter capital requirements for systemically important banks. Market participants are growing increasingly anxious over analyses suggesting the Swiss government could mandate UBS to maintain up to $24 billion in extra core capital.

Although UBS CEO Sergio Read more...