UBS Faces $20 Billion Hike in Capital Needs as Swiss Split Grows

The Swiss government outlined plans that would add billions of dollars to UBS Group AG’s capital requirements, deepening a showdown with the lender over its proposed banking reforms.

Bern stuck with a plan to submit a bill to parliament calling for the full capital backing of UBS’s foreign units on Wednesday even as it watered down other previously planned changes to the regulations. Together both sets of measures add up to an extra capital requirement of around $20 billion at the bank’s Swiss unit, according to the government.