Yvan Lengwiler in Le Temps
The call for more capital for UBS is a distraction. It will not insulate the bank against cyber attacks or devastating legal problem that can arise also in a well managed bank. What we need is to ensure that UBS can be resolved if necessary.
This requires four reforms:
1. The coordination of governmet institutions (Finance Department, FINMA, SNB) has to improve.
2. More options have to be prepared for resolution, such as the possibility to create a bridge bank.
3. FINMA requires stronger instruments.
4. SNB’s ELA framework needs to be reformed.