ZURICH, Switzerland (


) --


(UBS) - Get UBS Group AG Report

, the giant Swiss bank, is planning to separate its investment bank and incorporate it outside of Switzerland,

The Wall Street Journal


The effort would be a move to placate regulators in Switzerland who want to prevent another bailout run into trouble as it did in 2008, the


reported, citing people familiar with the matter.

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UBS is considering incorporating its investment bank, which had to be rescued by the Swiss central bank, in London, New York or Singapore, where it would have its own capital and be overseen by local regulators, the newspaper said.

Under the plan, the investment bank would be transformed into its own legal entity. Swiss regulators hope the change would mean that if the investment bank encountered problems, the parent company would no longer be liable for the losses.

Switzerland has stringent capital rules making it one of the toughest jurisdictions. UBS CEO Oswald Gruebel previously has said the stiff standards could force the bank to move units abroad, according to



-- Written by Joseph Woelfel

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Joseph Woelfel

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