$1.3 Billion UBS Duo Joins Wells FiNet Practice in Ohio

A New York appeals court allowed UBS to pursue Highland Capital founder for over $1 billion in unpaid judgments. The dispute stems from a 2007-2008 securitization deal that failed during the financial crisis. UBS alleges the founder and former general counsel transferred assets to avoid payments. The court found sufficient evidence against the founder but dismissed claims against the general counsel.

BT International has secured a contract with UBS to upgrade its global trader communications, consolidating 20 systems into one cloud-native platform hosted on Microsoft Azure. The BT Trading & Command unit deployed the solution, now live and used by 2,400 traders across 17 countries.

Switzerland's upper house approved a rule requiring UBS to hold 90% common equity tier 1 capital for overseas subsidiaries, which RBC analysts estimate could reduce UBS's earnings per share by 9%. UBS opposes the rule, arguing it harms competitiveness, and has explored options to mitigate its impact. The lower house will debate and vote on the proposal in October and November. RBC warns that easier rules are unlikely.

UBS Group's earnings per share may fall 9% due to Swiss capital reforms, according to RBC analysts. The reforms require UBS to back 90% of foreign units' value with CET1 capital. UBS opposes the plan, which it says would harm competitiveness and require $16B in additional capital. The Swiss parliament is set to debate the reforms further.

UBS was fined $125M by U.S. regulators for anti-money laundering violations, the largest such fine to date. Analysts suggest this signals increased scrutiny of banks, particularly those serving high-net-worth clients. The fine follows a 2018 penalty for similar issues, indicating UBS's compliance efforts were insufficient. According to experts, U.S. regulators are shifting towards outcome-focused AML regulations, requiring banks to demonstrate robust systems.

Swiss lawmakers advanced a proposal that UBS estimates could add $16 billion to its CET1 requirement. The Fed proposed reserve and capital rules for payment stablecoin issuers. TSB in New Zealand is reviewing its capital and liquidity reporting ahead of a merger. Singapore banks' capital ratios remain above requirements. Basel Committee estimates a 2.2% rise in required Tier 1 capital for large banks. Agricultural Bank of China issued new securities.