Core Viewpoint - HDFC Bank Ltd. is facing scrutiny over allegations of mis-selling Credit Suisse securities, leading to the placement of two senior executives on gardening leave as an internal investigation is underway [1][4]. Group 1: Allegations and Internal Actions - The bank has placed two senior executives on gardening leave amid a probe related to the alleged mis-selling of Credit Suisse's Additional Tier-1 (AT1) bonds [1]. - HDFC Bank has stated that it has not encountered any instances of mis-selling regarding the AT1 bonds, despite customer claims of inadequate information about the bonds' high-risk nature [2][3]. - An internal investigation is ongoing to determine who authorized the sale of the bonds, with potential punitive actions expected once accountability is established [4]. Group 2: Regulatory Context and Implications - A Dubai regulator flagged lapses in HDFC Bank's processes for offering financial services, resulting in a ban on adding new customers at its Dubai branch, which may have influenced the decision to place the bankers on leave [5][6]. - AT1 instruments are designed to shift the burden of bank rescues onto bondholders, making them attractive yet risky investments. In India, these bonds cannot be sold to retail investors, with exceptions for professional investors with over $1 million in investable assets [7].

UBS Group Conference Call Summary Company Overview - **Company**: UBS Group AG (NYSE: UBS) - **Date of Call**: September 30, 2025 Key Points from the Call Industry Context - The call focused on UBS's response to the Capital Adequacy Ordinance consultation, emphasizing the need for balanced and internationally aligned regulations following the Credit Suisse crisis [3][4][10]. Core Arguments and Positions 1. **Support for Regulation**: UBS supports strengthening regulations based on lessons learned from the Credit Suisse events, provided they are targeted, proportionate, and internationally aligned [4][10]. 2. **Concerns Over Capital Requirements**: Proposed capital requirements would unduly penalize UBS, which has operated without regulatory concessions and played a key role in stabilizing the financial system during the Credit Suisse crisis [4][8]. 3. **CET1 Capital Impact**: The proposals could eliminate around CHF 11 billion (12%) of group equity as eligible capital, significantly impacting UBS's financial position [10]. 4. **Software Capitalization**: The proposal to remove capitalized software from regulatory capital is seen as detrimental, as software is crucial for operational efficiency and competitive differentiation [11][12]. 5. **Deferred Tax Assets (DTAs)**: The full deduction of DTAs from regulatory capital is unprecedented and not aligned with practices in other jurisdictions, potentially harming UBS's financial stability [14][15]. 6. **Prudential Valuation Adjustments (PVAs)**: The proposed stricter treatment of PVAs does not reflect UBS's progress in reducing valuation uncertainty and could misrepresent the bank's financial health [16][17]. 7. **AT1 Instruments**: UBS supports strengthening AT1 instruments but opposes automatic suspension of coupon payments after losses, advocating for a more transparent approach linked to predefined capital ratios [18][32]. Additional Insights - **Regulatory Landscape**: The current Swiss regulatory environment is already stringent, with UBS's minimum capital requirements being higher than many peers [7][8]. - **Market Confidence**: UBS's ability to restart AT1 issuances post-Credit Suisse indicates strong investor confidence in these instruments [18]. - **Political Engagement**: UBS is actively engaging with Swiss authorities and stakeholders to ensure that the regulatory changes are balanced and consider the broader economic implications [44][46]. - **Future Outlook**: The timeline for final ordinance changes is expected by mid-next year, with parliamentary deliberations extending into 2027 [19][30]. Potential Risks - **Competitive Position**: The proposed capital measures could undermine UBS's competitive position relative to international peers, particularly if they do not align with global standards [7][10]. - **Political Uncertainty**: The ongoing political process surrounding the consultation may lead to unpredictable outcomes that could affect UBS's operational strategy [41][46]. Conclusion The UBS conference call highlighted significant concerns regarding proposed regulatory changes that could impact the bank's capital structure and competitive position. UBS remains committed to engaging in constructive dialogue with regulators to ensure that any changes are reasonable and aligned with international standards.