Finance

U.S. financial regulator says email hack exposed sensitive bank data

Published

2 months ago

April 8, 2025

A pedestrian passes the seal of the Office of the Comptroller of the Currency (OCC) displayed outside the organization’s headquarters in Washington, D.C., U.S., on Wednesday, March 20, 2019.

Andrew Harrer | Bloomberg | Getty Images

The Office of the Comptroller of the Currency on Tuesday said that a February hack of its email systems qualified as a “major incident” and exposed “highly sensitive information.”

The breach, first disclosed and resolved in February, involved information related to the “financial condition of federally regulated financial institutions used in its examinations and supervisory oversight processes.”

The OCC, an agency that regulates and supervises national banks, said that it learned of the incident on Feb. 11, and shut off compromised administrative accounts the next day. The regulator said it is using external cybersecurity experts for a full review of the incident and is launching a review of its IT security policies to prevent further attacks.

“I have taken immediate steps to determine the full extent of the breach and to remedy the long-held organizational and structural deficiencies that contributed to this incident,” said Acting Comptroller of the Currency Rodney Hood.

“There will be full accountability for the vulnerabilities identified and any missed internal findings that led to the unauthorized access,” he added.

Hackers had access to more than 150,000 emails from June 2023 until earlier this year, Bloomberg reported earlier, citing people with knowledge of the matter.

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Finance

Swiss government proposes tough new capital rules in major blow to UBS

Published

22 hours ago

June 6, 2025

Business Finance News

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.

The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.

“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.

The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.

“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.

‘Too big to fail’

UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.

The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.

Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.

At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.

Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.

“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.

“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”