Union Bancaire Privee, which lost about $700m (€548m) of its investors' money in Bernard Madoff's Ponzi scheme, has said that it will pay back half their initial outlay in a "goodwill gesture". The offer to compensate investors, the latest by a large bank, comes as Madoff today pleaded guilty to fraud charges in New York.

The Swiss bank said today it would pay "half of the cost basis" of the exposure its investors had to Madoff as a result of UBP's investments, in five annual instalments, plus 2% interest. It was unclear whether conditions were attached to the offer. A spokesman for UBP did not return calls seeking further comment by the time this article went to press.