UBS Group suffered a setback on Wednesday. Swiss lawmakers voted by a clear margin for a plan that could eventually force the global wealth management giant to hold billions of dollars in additional capital. The upper house of the Swiss parliament passed an amendment to the Government Regulatory Reform Act by 29 votes to 16, requiring UBS to cover up to 90% of the value of its overseas subsidiaries with high-quality share capital. This is just a minor adjustment to the government's original 100% coverage plan, and it is also a phased victory for Swiss Finance Minister Karin Keller-Sutter. Over the past two years, she has been pushing Switzerland's largest bank to raise capital levels to ensure that its overseas operations can be sold safely during the crisis. UBS CEO An Sijie and Chairman Colm Kelleher previously opposed the 90% plan and instead supported another alternative that would drastically increase the use of convertible debt to achieve the same goal.

UBS Group suffered a setback on Wednesday. Swiss lawmakers voted by a clear margin for a plan that could eventually force the global wealth management giant to hold billions of dollars in additional capital. The upper house of the Swiss parliament passed an amendment to the Government Regulatory Reform Act by 29 votes to 16, requiring UBS to cover up to 90% of the value of its overseas subsidiaries with high-quality share capital. This is just a minor adjustment to the government's original 100% coverage plan, and it is also a phased victory for Swiss Finance Minister Karin Keller-Sutter. Over the past two years, she has been pushing Switzerland's largest bank to raise capital levels to ensure that its overseas operations can be sold safely during the crisis. UBS CEO An Sijie and Chairman Colm Kelleher previously opposed the 90% plan and instead supported another alternative that would drastically increase the use of convertible debt to achieve the same goal.