Warren Presses Bessent and Swiss Megabank UBS on Private Conversations on the Bank’s Possible Move to the U.S., Exposing Taxpayers to Risk
“If it re-domiciled in the United States, UBS would be the sixth largest bank in the country, putting the American economy, financial system, and taxpayers at even greater risk should UBS fail.”
Letter to UBS | Letter to Secretary Bessent
Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, sent letters to Swiss megabank UBS Group AG Chairman Colm Kelleher and U.S. Treasury Secretary Scott Bessent expressing concerns about the financial stability implications of UBS potentially relocating its headquarters to the United States to evade stricter rules abroad and exploit the U.S. 's weakened guardrails under the Trump Administration. Ranking Member Warren’s letter follows reports that UBS and Secretary Bessent have “privately discussed moving (UBS’s) headquarters to the US…if the (Swiss) government does not back down on new capital rules.”
“As a global systemically important bank (GSIB), UBS’s failure could have catastrophic consequences for the global financial system,” wrote the Ranking Member. “When fellow GSIB Credit Suisse collapsed in 2023 under the weight of a long history of scandals, mismanagement, and financial losses, the Swiss government facilitated a megamerger between the two banks, supercharging UBS’s systemic riskiness. Overnight, UBS grew more than 50%, from about $1 trillion in assets to nearly $1.7 trillion.”
The Ranking Member raised concerns over UBS redomiciling in the US to avoid complying with increased capital requirements in Switzerland: “Though U.S. regulators have historically ‘been wary of large lenders redomiciling in the country’ due to ‘public anger over taxpayer-funded bailouts’ during the 2008 financial crisis, the Trump administration is reportedly ‘receptive’ to the idea of UBS relocating here. Unlike Swiss policymakers, U.S. banking regulators under President Trump have proven willing to roll back safeguards on megabanks like UBS.”
She continued: “If it re-domiciled in the United States, UBS would be the sixth largest bank in the country, putting the American economy, financial system, and taxpayers at even greater risk should UBS fail. Unfortunately, there is reason to be concerned: UBS continues to face significant regulatory, legal, financial, and operational challenges related to its acquisition of Credit Suisse more than two years later… A transcontinental move to a lighter touch regulatory jurisdiction would unquestionably distract from the firm’s effort to complete the integration in a safe and sound manner.”
She concluded by requesting answers to her questions on UBS’s plans to relocate its headquarters to the US and its interactions with the Trump Administration no later than December 19, 2025.
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