Bank pays $500m to Madoff trustee

A private Swiss bank has agreed to pay up to $500m (£316m) to investors defrauded by Bernie Madoff.

Irving Picard, the trustee appointed to recover money for the pyramid schemer's victims, has reached an agreement with the Geneva-based bank Union Bancaire Privee, and M-Invest Ltd, a corporation the bank set up in the Cayman Islands to invest with Bernard L Madoff Investment Securities.

The settlement, under which UBP denied any liability, brings the amount of money the trustee has reclaimed for victims of Madoff's $65bn fraud to $2bn. In the past week, he has also sued HSBC, JPMorgan and UBS. He is also pursuing Madoff's family members for more than $30m.