Swiss finance minister opposes compromise solution on Swiss banks AT1 capital.

Swiss Finance Minister stated that she opposes a compromise proposed by lawmakers in the discussion surrounding UBS Group's new capital requirements. Her latest statement dispelled expectations from the public that her stance on this issue was softening. Swiss Finance Minister Karin Keller-Sutter said in an interview published on Friday by Swiss media "Finanz und Wirtschaft" that the idea of allowing the use of additional Tier 1 capital bonds, rather than common equity Tier 1 capital, to provide full capital support for foreign subsidiaries, "does not solve the problem." Switzerland is discussing how much additional capital UBS Group needs three years after acquiring Credit Suisse through a government-led emergency transaction. Under the proposal by the Finance Ministry, UBS is required to provide full capital support for its foreign subsidiaries through its Swiss entity, which is expected to increase UBS's capital requirements by approximately $23 billion.