(Refiles to replace extraneous word 'limit' in headline with
By Joshua Franklin
ZURICH, Sept 30 Switzerland's government on
Friday tasked its finance ministry with limiting the tax burden
on UBS and Credit Suisse as the nation's two
biggest banks issue bonds to meet new too-big-to-fail (TBTF)
"The proposed solution would prevent the tax burden of the
top holdings of systemically important banks from rising with
the issuance of CoCos (Contingent Convertibles), write-off bonds
and bail-in bonds," the Swiss government said in a statement.
In May, the government settled on the final version of its
TBTF law, which includes the headline requirement for a 5
percent leverage ratio of core capital to total assets at UBS
and Credit Suisse.
Solving the TBTF problem has been a priority for U.S. and
European regulators after several banks, including UBS, were
bailed out by taxpayers during the financial crisis.
(Reporting by Joshua Franklin, editing by John Miller)