UBS falls more than 3.8% as reports suggest the Swiss government is considering proposing stricter capital regulations.

UBS fell more than 3.8% to $32.46. According to reports, the Swiss government is expected to release a draft next month requiring UBS to increase its loss-absorbing capacity to cover 100% of its overseas units' capital losses. The report indicates that the draft has not been finalized and the Swiss Federal Council may still make changes. If the draft is implemented, UBS would need to increase its capital by up to an additional $25 billion.