Swiss bank UBP had early warnings on Madoff: report

ZURICH (Reuters) - Swiss bank Union Bancaire Privee (UBP) held hundreds of million of dollars from wealthy clients in disgraced financier Bernard Madoff's investment scheme despite in-house warnings, the Wall Street Journal said on Wednesday.

The Swiss bank's own research team raised concerns about Madoff, who is charged with running a huge investment scam, as early as the early part of 2007, the newspaper reported, citing people familiar with the matter.

A UBP spokesman said the bank would make no comment until the end of the U.S. investigation into Madoff's activities.

The Financial Times reported in December that UBP had a $700 million exposure to Madoff-related investments.

In an email exchange seen by the Wall Street Journal, UBP's then-deputy head of research, Gideon Nieuwoudt listed a number of worries, including the lack of even basic information.

He recommended in the email that Madoff be taken off UBP's list of approved funds.

At least two members of UBP's executive committee participated in the email discussion, the Journal said.

(Reporting by Sven Egenter; editing by John Stonestreet)