«We want to be a Swiss bank,» UBS Chief Executive Sergio Ermotti stated at a J.P. Morgan investor conference in London when asked whether the bank might relocate its headquarters elsewhere, according to a report by Reuters.

He referred to arguments the bank has been making for months. The new regulations proposed by the Swiss government to strengthen financial stability would impair the competitiveness of both the bank and the country, he added.

«This is not going to work for us,» he said regarding the plans for capital requirements for foreign subsidiaries, which would force UBS to raise additional capital in the billions. The situation is «quite serious,» he added.

Hopes for a «Reasonable Solution»

The CEO, however, still hopes for the possibility of a compromise. «I am hopeful that a reasonable solution can be found — one that is acceptable for both sides, for shareholders and for clients.»

Under the comprehensive plan presented by the government in June to tighten Swiss banking regulations following the collapse of Credit Suisse, UBS would need to raise up to 24 billion dollar in additional core capital.

Most recently, the economic committees of both the National Council and the Council of States suggested in letters to the Federal Council that the plans could be softened. They warned of «overregulation» and argued that Switzerland should not exceed the requirements applied at other major financial centers.

It may take a long time for clarity to emerge as the legislative process unfolds. Whether the predominantly international shareholders of the last remaining major Swiss bank will have the necessary patience remains uncertain.