Geneva - Banks and financial institutions in Geneva have lost possibly some 5 billion Swiss francs (4.2 billion dollars) in their involvement with former Nasdaq chairman Bernard L Madoff who was arrested the day before in New York, a Swiss paper reported Saturday.
The Le Temps newspaper, without naming its sources, called the affair an "earthquake," and that a leading hedge fund, Union Bancaire Privée, had exposure of about 1 billion dollars.
The company declined to comment on the report.
A private bank, Benedict Hentsch, said on Friday it could lose up to 47 million dollars to the fraud, meaning about 5 per cent of the assets it manages.
There was also concern for private investors.