In Bern, the legislative machinery on banking regulation is running at full speed. Yesterday, Finance Minister Karin Keller-Sutter (FDP) attended a meeting of the Council of States’ Economic Affairs and Taxation Committee (EATC-S). The central question was how much capital UBS will be required to hold against its foreign subsidiaries in future.
Instead of reaching a decision, as had widely been expected, parliamentarians engaged in a fundamental debate and postponed the vote until August 31.
Rest of the Package Rolled Out
This fast-tracked capital proposal is the most politically sensitive part of the reform package, the next stage of which the Federal Council set in motion on Wednesday at Keller-Sutter’s request: it sent the broader part of the reform out for consultation.
It complements the capital measures already adopted and, according to the Federal Department of Finance (FDF), is intended to close the gaps identified in the wake of the Credit Suisse crisis:
