Finance

Swiss Finance Veteran Cautions Against Growing Scale of UBS, Report Says

UBS (UBSG.S) could be considered too large for Switzerland following its acquisition of Credit Suisse, according to former Swiss Finance Minister Ueli Maurer, who spoke on Saturday, emphasizing the need for measures to mitigate the risks associated with the enlarged bank.

"If you simply look at the numbers and compare UBS to the Swiss economy, it is too big," Maurer told Tages-Anzeiger newspaper. "Therefore, the risks must be reduced."

With a balance sheet of around $1.7 trillion, UBS’s size is double that of Switzerland’s annual GDP, making it an unusually large player for a nation of this scale.

Experts have raised concerns that if UBS were to fail, there would be no local competitors capable of absorbing it, and nationalizing the bank could severely strain public finances.

Maurer stressed that reducing these risks was primarily the responsibility of shareholders, particularly through their selection of board members. "They must take responsibility, not the taxpayers," said Maurer, who stepped down months before Credit Suisse collapsed in March 2023.

"Legislative measures must also be considered," Maurer added, defending himself after a recent parliamentary report questioned his handling of the Credit Suisse crisis at the end of 2022.

In response to the Credit Suisse collapse, the Swiss government last year proposed stricter capital requirements for UBS and Switzerland’s other major banks to strengthen the financial sector. While the specifics of these requirements are still unclear, UBS has resisted the possibility of being required to hold an additional $15 billion to $25 billion in capital.

Maurer warned that overly high capital requirements could make Swiss banks less competitive and push them to relocate abroad. "For the Swiss economy, which hosts many international multinationals, a large bank is an advantage," he said. "However, the risks must be minimized."

TECH

Colorado Firms Present Cutting-Edge Technologies at CES Expo

At this year's CES in Las Vegas, artificial intelligence took center stage, but Colorado companies also made waves. Afference, a Boulder startup, showcased its neural-haptic ring, an evolution of its award-winning glove that simulates touch in virtual environments. "We’re now ready to share this technology more widely," said co-founder Jacob Segil, after receiving strong public interest.

Other Colorado companies made an impact in unique ways. Fort Collins-based OtterBox introduced new cases at a nearby hotel, while Denver's iterate.ai showcased its AI partnership with Intel at a private event. Lightship RV presented its electric travel trailer, designed to alleviate range anxiety for EV owners with its self-powered system.

Additionally, VOORMI's wearable microclimate monitor won a CES Innovation Award, further highlighting the diverse tech innovations coming from Colorado at the event.

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CRYPTO

Crypto Enforcement Leaders in the US Exit: A Turning Point for Digital Assets

Several prominent cryptocurrency enforcement leaders from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are stepping down, signaling a notable change in the regulatory landscape.

The CFTC announced on Friday that Ian McGinley, Director of the Division of Enforcement, will leave his position on January 17. McGinley, who has held the role since February 2023, is credited with elevating the CFTC’s standing as a leading agency for digital asset enforcement. CFTC Chairman Rostin Behnam praised McGinley’s leadership, noting, "Ian led the Division of Enforcement to two groundbreaking years, raising the bar to historical heights."

Behnam emphasized McGinley’s work addressing misconduct across both traditional and emerging markets, particularly in the digital asset space, and for enhancing the agency’s enforcement capabilities with innovative strategies.

During his time at the CFTC, McGinley focused on positioning the agency as a leader in digital asset enforcement. He led initiatives targeting violations in the cryptocurrency sector, solidifying the CFTC’s role as a key law enforcement agency in digital markets. His team took on landmark cases, including those related to insider trading and other complex cryptocurrency issues. McGinley also established the Cybersecurity and Emerging Technology Task Force, focusing on emerging technologies like artificial intelligence and digital fraud, reinforcing the division’s commitment to safeguarding rapidly evolving markets.