Pivots from UBS and Deutsche Bank are a make-or-break moment for Europe’s economy, which has long been held back by its blundering banking sector.
UBS chair Colm Kelleher has talked to Treasury Secretary Scott Bessent about moving the Swiss bank to New York, the Financial Times reported. UBS hasn’t notified the Swiss regulator, something it would swiftly do if its musings were serious, a person close to the company said. But with a $26 billion capital shortfall hanging over its head, its options are limited: a punishing capital raise, fighting Zurich in court, staging a long-shot referendum, or redomiciling through a merger or otherwise. A negotiated settlement looks likeliest: “As we have said repeatedly, we want to continue to operate successfully as a global bank out of Switzerland,” a spokesman said.
Meanwhile, Deutsche Bank rolled out an ambitious plan it hopes will turn the page on years of restructurings and tactical retreats. CEO Christian Sewing said “our long-term vision is to be the European champion” — something the continent’s parochial and nationalistic banking sector badly needs.