Geneva  - A Swiss private bank said Thursday that it would buy back from eligible clients their exposure to the fraudulent scheme run in the United States by Bernard Madoff at 50 per cent of the original cost.

Union Bancaire Privee (UBP) said the "goodwill gesture" towards it clients would see the bank pay for the purchase of the investments over the course of five years.

UBP also announced moves within the bank to improve risk management and research.

The Geneva-based bank said it had more than 100 billion Swiss francs (84.11 billion dollars) in assets under management at the start of this year.

UBP said in December that its exposure to Madoff stood at less than 1 per cent of the assets under management, but was still considered to have been one of the hardest hit private banks in Europe.

Madoff, who faces a possible lifetime jail sentence, ran what is estimated to have been a 50 billion dollar Ponzi scheme. He was for many years a leading Wall Street figure and was the chairman of the NASDAQ exchange.

Swiss media has reported ongoing investigations into possible criminal proceedings against at least one firm in relation to its exposure to Madoff and alleged failure to properly inform clients of risks. (dpa)