Switzerland’s Council of States voted 29-16 on September 23 to require UBS to hold 90% Common Equity Tier 1 capital against its foreign subsidiaries at the parent level. The measure is a compromise between the government’s proposed 100% requirement and earlier discussions allowing greater use of Additional Tier 1 bonds. Goldman Sachs and Citigroup estimate the parliamentary measure would require roughly $17 billion in additional capital. UBS estimates an approximately $16 billion impact from the vote plus another $2 billion from upcoming ordinance changes, while the government’s original plan sought $20 billion in additional CET1 capital. The legislation follows Credit Suisse’s 2023 collapse and UBS’s government-brokered takeover, and could push UBS’s cumulative additional CET1 requirement above $30 billion. The bill still requires approval from the National Council and could face a referendum that delays implementation to 2027 or later. UBS has called the measure excessive and warned it could weaken its competitiveness and constrain shareholder distributions; its shares were shown down 3.66%.