Banks that fall short must be recapitalised—by raising fresh equity from private investors, by bailing in creditors and, in some cases, by bringing in public money.
It is widely assumed that if Gautam Adani, India's second-richest tycoon, recapitalises his businesses, a crucial source of finance will be Abu Dhabi, which has already invested billions of dollars in several of his companies.
The Swiss government pumps billions into the bank to help recapitalise it, and that makes Swiss taxpayers very unhappy. Meanwhile, UBS's rival Credit Suisse makes it out alive, receiving new capital from private investors instead of the government.