Switzerland's New UBS Plan Is Complex, Costly And Bad

Switzerland is searching for a better insurance policy against any failure of its last global bank, UBS Group AG. The latest proposal from lawmakers to make a financial crisis less likely to crash the economy is meant to protect taxpayers from any future bailout while keeping the lender competitive. But the plan is complex, costly and probably not even workable. Despite the effort by a Swiss parliamentary committee to design a compromise, both UBS and government leaders hated it. Finance Minister Karin Keller-Sutter called it 'a solution in favor of the bank and against taxpayers.' The bank said it would mean a significant increase in funding costs for itself and the nation's economy.