The point at issue is that banks are fighting for their lives. UBS is no different; any solution is acceptable as long as they keep their jobs. But the game is over. Maastricht allowed for the fining of recalcitrant countries with high debt to GBP ratios. It was abandoned immediately because you cannot fine anyone, or an institution which has no money.
Fining my nephew would not work because he has no money. Can you imagine the ECB trying to fine Greece? The whole thing is fabulously ridiculous.
The next phase is to print money on a scale unprecedented to buy junk sovereign debt in the secondary market having removed presumably section 125 of the Lisbon Treaty. It might ‘work’ until Easter, or even next autumn. Sooner or later hyper inflation will break the European fiat currency system (and good riddance).
The ‘Macro Team’ at UBS will end up flipping burgers sooner or later and the world will not weep for them.