US Stock Market Move | UBS Group AG (UBS.US) rose nearly 4% in pre-market trading, reaching its highest point since 2008.

On Tuesday, UBS Group AG (UBS.US) rose nearly 4% in pre-market trading, reaching $44.37 at the time of writing, the highest level since 2008. On the news front, Swiss lawmakers have proposed a compromise on new capital rules for UBS Group AG, aiming to ensure its competitiveness internationally. The Swiss government had previously proposed that UBS Group AG, which became Switzerland's only global bank after acquiring struggling Credit Suisse in 2023, should raise the capital adequacy ratio of its foreign subsidiaries to 100%, instead of the current 60%, to cover potential overseas losses. UBS Group AG stated that this reform would require finding an additional $24 billion in capital. The Swiss government had suggested that UBS Group AG could use common equity Tier 1 (CET1) capital to meet this requirement. However, a group of lawmakers proposed allowing UBS Group AG to use Additional Tier 1 (AT1) debt, also known as CoCo bonds, to cover up to 50% of its foreign subsidiary's capitalization requirements, which would alleviate the bank's burden.