« Huge uncertainty creates »: UBS boss Ermotti criticizes Trump

Do you soon find a solution to the problems that Donald Trump caused with his tariffs? Sergio Ermotti doesn’t believe in it.

« A higher equity harms UBS to competitiveness, it causes additional costs for our customers and leads to fewer tax revenues. » This said UBS boss Sergio Ermotti on Tuesday evening at a meeting of the Cantonal Zurich FDP.

This is the party with whose Federal Councilor Karin Keller-Sutter is the head of UBS in a clinch. UBS, on the other hand, defends itself to equip its subsidiaries abroad with 100 instead of 60 percent equity. Finance Minister Keller-Sutter’s plan could mean that it has to put around CHF 20 billion aside. Keller-Sutter considers this to be necessary because the Credit Suisse’s daughters were not sufficiently secured; This contributed to the failure of the bank. UBS, on the other hand, sees the new regulation endangered its competitiveness.

Ermotti emphasized before the freedoms: With a massively higher equity, UBS was forced to demand more money for its services than competing banks. The UBS already meets high capital requirements.

Top squad of the CS should apologize publicly

In a round of talks with the Zurich FDP President Filippo People’s Egger, Ermotti then criticized the customs policy of American President Donald Trump: « The liberation Day has become an uncertainty. » Trump had created a « huge uncertainty » – and it would remain.

Ermotti was pessimistic: he no longer believes that a solution to the problem is found at short notice. The probability is 20 to 30 percent. On the other hand, higher the likelihood that the situation will come out of control – « I appreciate it higher than 50 percent ». Either way, the uncertainty will last for a long time. According to Ermotti, Trump’s tariffs will fuel inflation in the United States. « That is why it will be difficult for the American central bank to reduce interest rates. »

On the one hand, Ermotti expressed his lack of understanding about the course of the US President-the UBS boss also explained: « This is now my 16th crisis since I was in the financial industry. » The message: The current difficulties will also be mastered at some point.

Ermotti also criticized the leadership of the Credit Suisse, which rose in the UBS. According to the Ticino, the people responsible should have been publicly explained and apologized for a long time.

His own wages engross Ermotti as « sustainable »

No regretted Ermotti expressed his wages of CHF 14.9 million last year. Filippo Menschenegger asked the guest how he was the wages of five million, for whom SVP politician Jakob had successfully pleaded in the Council of States. Ermotti replied: wages at UBS should be competitive, but also sustainable. Only 20 percent of wages would be paid out immediately in the general directorate of the bank – the rest of the episode if UBS develops well and stable in the next three to five years.

Ermotti returned to his core message: today UBS is solid and resistant. Now you have to be careful that the bank does not fall behind – because of an overly rigid regulation.