The transaction has generated controversy in Switzerland, where a bank with assets nearly twice as large as its yearly economic production currently resides.

According to Kelleher, the agreement “solidified Switzerland’s standing as a pioneer in wealth management.”

In addition to being “one of the best-capitalized banks in Europe,” he underlined that UBS has the financial capacity to withstand losses of more than $200 billion.

“One cannot control trust. He clarified that Credit Suisse was not compelled to undertake the historic weekend rescue due to excessively low capital requirements.

The regulatory suggestions that were revealed earlier in the month have caused experts and investors to reevaluate the possible advantages that UBS stands to gain from the largest banking transaction in history. On Wednesday, the lender’s shares ended the day nearly 3% down in Zurich.

After the Swiss government released its recommendations in a study on the safety of the banking system, the stock fell 10%, erasing some of the remarkable gains made since the agreement was announced a year ago.

At UBS’s annual shareholder meeting on April 24, 2024, is Chairman Colm Kelleher.

This month, when asked if the proposed measures would force UBS to hold extra capital of between 15 billion and 25 billion Swiss francs ($16.4 billion and $27.3 billion), the nation’s finance minister, Karin Keller-Keller Sutter, responded that such estimates were “plausible” to the Tages-Anzeiger newspaper.

More specific ideas will be released by the Swiss government in the first quarter of the following year.

Anke Reingen, an RBC Capital Markets banking analyst, stated in a letter on Tuesday that the worries expressed by UBS shareholders were “justified.”

Because a bank can often distribute less cash to shareholders or use it to increase earnings, the more capital it must retain in reserve, investors are concerned.