A highly worrying development for Europe is just around the corner, as Swiss banking giant UBS is seriously considering moving its headquarters to the United States, in a move that – if implemented – would shake the foundations of the European financial landscape.
With Donald Trump’s presidential return to the White House and the resurgence of deregulation in the US, UBS seems to see a more attractive and “relaxed” regulatory reality in the country, in contrast to the tightening of regulations in Europe and especially in Switzerland.
The Swiss government is preparing new, stricter capital requirements in response to fears of a new banking crisis. These measures were imposed after the collapse of Credit Suisse in 2023, which was gradually acquired by UBS to avoid a complete destabilization of the Swiss banking system.
However, the new regulations require UBS to increase its risk capital by $26 billion, an amount that the bank’s management considers unsustainable and destructive to its competitiveness at the international level.
UBS has publicly stated that it “strongly disagrees with the extreme increase” in the requirements, stressing that the new measures are disproportionate and not in line with international regulations.
UBS opens dialogue with Trump administration
With chairman Colm Kelleher and CEO Sergio Ermotti at the helm, UBS has already begun exploratory contacts with Trump administration officials to pave the way for a possible transfer of its headquarters to the United States.
According to sources, an acquisition or merger with a US bank is on the table. A UBS spokesman declined to comment on the information, but did not deny that contacts with US officials have been made. The same happened with the US Treasury Department, where the spokesman for Secretary Scott Bessent declined to comment, but did not deny the contacts.
Targeting a mid-sized US bank acquisition
UBS, with a market capitalization of about $126 billion, could merge with or acquire one of the mid-sized US banks, without being bound by the strict deposit collection regulations that apply to domestic banks.
For example, JPMorgan Chase is prevented from making large acquisitions, as it has already exceeded 10% of the share of bank deposits in the US. However, UBS is not subject to this limit, and therefore can move more freely.
Among the potential merger targets are rumored to be PNC Financial ($79 billion) and Bank of New York ($74 billion), two banks that have long been mentioned as potential takeover candidates.
Europe is losing out everywhere
As in the US, UBS is considered a “systemically important bank” in Switzerland, a designation that entails stricter supervision and capital requirements, especially since the 2008 global financial crisis.
The problem is that, according to the bank, Swiss regulators have exceeded internationally accepted limits, suffocating its business strategy. In contrast, in the US – especially under a Trump administration – there is a culture of deregulation, especially for international players that promise investment and job creation.
UBS’s move to threaten to leave Switzerland could be interpreted as a strategic lever to pressure the Swiss authorities to relax the terms. However, the fact that specific contacts have been made with the US government, as well as the search for a bank acquisition in the US, show that the threat is more realistic and immediate than it seems.
If UBS finally carries out the transfer, it will be a devastating defeat for the European regulatory model and a huge victory for Donald Trump, who will be able to advertise another great “success” in attracting foreign investment and corporate giants to the US.
The UBS case clearly illustrates the dysfunction of the European banking regulatory framework, which now seems not only strict, but also repulsive to the big players. Europe appears to be sacrificing competitiveness on the altar of overregulation, and the US – with Trump at the helm – appears poised to take full advantage of this weakness.
If UBS leaves Switzerland, it will not be just another bank moving. It will be a symbol of the shift of financial power from Europe to America.
