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Employees group warns of major Swiss job losses if UBS relocates, newspaper says

By Reuters News

ZURICH, Oct 25 (Reuters) - As many as 12,000 UBS UBSG.S jobs in Switzerland could be at risk if tougher capital rules prompt the bank to relocate, according to the Swiss Bank Employees Association (SBPV), newspaper NZZ am Sonntag reported.

• In a letter to lawmakers cited by the paper, the SBPV warned a relocation could cost 10,000 to 12,000 of UBS's roughly 34,000 jobs in Switzerland, on top of cuts already under way as it completes its integration of fallen rival Credit Suisse.

• Neither UBS nor the SBPV immediately replied to requests from Reuters for comment.

• The warning comes as a committee in the lower house of the Swiss parliament prepares to discuss how much capital UBS should have to hold to back its foreign subsidiaries.

• Last month, the upper house proposed UBS should back those units with 90% Common Equity Tier 1 capital.

• UBS has suggested that is too much and the bank's chairman has warned it would need to carefully consider its future in Switzerland if the new rules are too harsh.

• Some shareholders of the bank have called for UBS to leave Switzerland, and the bank has been drafting potential contingency plans including shifting its headquarters or merging with another lender, sources have told Reuters.

• In its letter, the SBPV called for a "viable compromise", saying stricter capital requirements could call into question UBS remaining based in Switzerland.

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