Swiss banking regulators would welcome UBS spinning off its American business, according to Wall Street sources cited by the New York Post’s On The Money column, reviving long-running speculation that the Zurich-based bank could eventually sell its US wealth management and investment banking operations.
UBS Americas combines a modest investment bank with a sizable brokerage arm serving high-net-worth clients. That brokerage unit employs about 6,000 financial advisers overseeing roughly $2.4 trillion in assets, making it an attractive target for rivals such as Morgan Stanley and Bank of America’s Merrill Lynch.
The renewed chatter follows months of friction between UBS leadership and Swiss regulators over new capital rules. UBS Chairman Colm Kelleher and CEO Sergio Ermotti have objected to requirements that would force the bank to hold an additional $16 billion in capital. On The Money previously reported that executives had explored moving the 164-year-old institution’s domicile to the United States, including meetings with the Trump administration, or acquiring a US bank as a way to relocate through a merger.
Both paths face obstacles. UBS is Switzerland’s largest bank, and its high-end private banking clientele is something the Swiss government is unlikely to want managed out of New York.
Sources inside the bank say a cleaner alternative — keeping the Swiss private bank intact while spinning off the US operations — is something Swiss regulators would welcome. The reasoning, according to those sources, is that Swiss authorities view American banking operations as inherently riskier in the wake of the 2008 financial crisis.
“They would love to get rid of us,” said one senior UBS Americas employee who asked not to be named. “The Swiss see us as a big basket of risk and would be thrilled if we could find a buyer.”
The pressure traces back to 2023, when Swiss authorities pushed UBS to absorb its failing rival Credit Suisse after losses tied to risky investment banking activity. That takeover led to tougher capital requirements aimed at curbing risk-taking and avoiding a repeat crisis. UBS has since lobbied regulators to ease those rules, but the Swiss appear set to proceed with capital requirements that could make it harder for the bank to compete with less-regulated US brokerages.
Notably, UBS Americas’ wealth management business — the part that would likely be sold — is considered one of the more stable lines of banking, operating largely on fees tied to assets under management rather than riskier trading activity.
Morgan Stanley has been floated inside UBS as a potential buyer, according to the report. It remains unclear whether Morgan Stanley CEO Ted Pick would pursue a deal that could cost close to $150 billion, though significant cost savings from eliminating back-office and support functions could make the math work. The report also suggested the Trump administration’s generally permissive approach to mergers would be unlikely to raise antitrust concerns, since brokerages are not subject to the deposit caps that apply to banks.
A UBS spokesperson said the bank does not comment on speculation. Ermotti has previously stated that “shrinking is not an option.” A Morgan Stanley representative had no immediate comment.
