Swiss upper house backs 90% CET1 guarantee for UBS overseas subsidiaries

The Council of States' backing signals that Switzerland's political establishment is willing to keep UBS's foreign operations on a relatively light capital leash, rather than ring-fencing them. That matters because UBS's overseas units are where much of its balance sheet and risk sit, so the guarantee's calibration touches both the bank's funding costs and Swiss taxpayers' contingent exposure. The open question is whether the lower house shares the upper house's view, and whether the 90% level survives the remaining legislative steps.