Switzerland’s upper house of parliament wants to hand the Federal Council, the country’s executive body, the power to decide how much capital UBS needs to hold. The motion... would allow the government to set banking capital regulations through ordinance rather than requiring full parliamentary approval. The stakes are substantial. Government estimates peg the additional Common Equity Tier 1 (CET1) capital requirement at roughly $20 billion, with some analyses suggesting the figure could climb to $22 billion. At issue is how much of a financial cushion UBS must maintain at the parent level to fully back its foreign subsidiaries. CET1 capital...