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Breakingviews: Swiss banks can handle stricter capital rules

Thursday, November 07, 2013 - 03:02

Nov. 7 - Switzerland's finance minister reckons UBS and Credit Suisse should have an equity-to-assets ratio of 6-10%. Breakingviews crunches the numbers to ask what levels are manageable.

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Today I'm breaking these -- of the Swiss finance and circles for a higher leverage ratio -- Credit Suisse and UBS deal with six to 10%. And despite beating modest net profit full costs comments bank makes less progress than markets think. President views of breaking views George Hague which is breaking news columnist joins me now George. Still stuck with the -- to reach you requirements. Fossils. Appreciate it is 3% in isn't this quest to stretch this rise -- -- 10% for UBS and Credit Suisse. Yeah absolutely and then when this respondents in this came out of this this the other day and I mean the markets to take him back and by Chris we've seen it -- woman's full 5% say it was like. Mean squat -- worried about it. Law announce a series is that it's not actually back and possible pool both of them to get them to the lower end of that 6%. That was still leave -- way above. All the articles that the main competition. That the big problem for them -- -- would still come here beneath it 10% this was spot on his principles -- set. Then they would have to raise. Capital of real a really Beagle can't tackle fifty billion for Credit Suisse and that would be a problem but. He instinct patent on processes that. In this little errands we -- -- -- -- -- it is -- -- want to stress. The two banks business like eat have problems getting -- that when you were at one exposed UBS. And probably federal Credit Suisse and to get to 6% credit he's been just about do it. And if they need to get tenth and then Credit -- certain problems since considerably less so yet. Great AK and Commerzbank another bank in the headlines today shares such as checked. Up up almost ten -- driven it all and if this. I don't but this case says you know it's not as sign ES it Lex. Well dictating what color space that's been substance is also area of the -- following news since Google mail bag during the crisis. I think. People tend to react to it everything they do -- of -- is quite -- now with a play and them. What's really happened here is political was spent on -- just stick to this grassy. Adam David -- a little bit better on and on cool reduction which is because of it but generally speaking. It's it's it's nothing you know it's not that it's amazing -- the unit it's getting -- -- -- if -- promote it to you how it comes up about but it's not really in the things it takes us well what we need. I can't thank you very much for joining us George came back from breaking these. The launch and assessing -- -- inside to watch -- US breaking each and every day. That's all that he east in seventeen per -- GMT I'm actually an all this is what is.

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Breakingviews: Swiss banks can handle stricter capital rules

Thursday, November 07, 2013 - 03:02