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REFILE-Swiss gov't to amend tax burden for UBS, Credit Suisse over TBTF rules
September 30, 2016 / 10:07 AM / a year ago

REFILE-Swiss gov't to amend tax burden for UBS, Credit Suisse over TBTF rules

(Refiles to replace extraneous word ‘limit’ in headline with word ‘tax’)

By Joshua Franklin

ZURICH, Sept 30 (Reuters) - Switzerland’s government on Friday tasked its finance ministry with limiting the tax burden on UBS and Credit Suisse as the nation’s two biggest banks issue bonds to meet new too-big-to-fail (TBTF) requirements.

“The proposed solution would prevent the tax burden of the top holdings of systemically important banks from rising with the issuance of CoCos (Contingent Convertibles), write-off bonds and bail-in bonds,” the Swiss government said in a statement.

In May, the government settled on the final version of its TBTF law, which includes the headline requirement for a 5 percent leverage ratio of core capital to total assets at UBS and Credit Suisse.

Solving the TBTF problem has been a priority for U.S. and European regulators after several banks, including UBS, were bailed out by taxpayers during the financial crisis. (Reporting by Joshua Franklin, editing by John Miller)

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