NEW YORK (Bloomberg) — HSBC Holdings Plc, Europe's biggest bank, should turn over internal reviews of potential fraud and other operational risks at Bernard Madoff's business from 2006 and 2008, a New York judge ruled.

US Bankruptcy Judge Burton Lifland agreed on Tuesday to seek an order from the High Court in London forcing HSBC to hand over reports, contracts, audio recordings and documents related to examinations of Madoff's firm conducted by an affiliate of KPMG International. HSBC acted as custodian bank for several funds that invested with the con man.

The last review was commissioned by HSBC in September 2008, about three months before Madoff's arrest, according to the ruling. London-based HSBC and trustee Irving Picard in New York reached an agreement on which documents should be turned over if the UK order is issued, Manhattan court filings show.

HSBC and UBS AG, based in Zurich, are among banks being sued for billions of dollars by investors in so-called feeder funds who claim the banks failed in their duties as custodians. Lawsuits are pending mostly in Luxembourg and Ireland, where funds collapsed after Madoff's arrest in December 2008.

The KPMG reports were entitled "HSBC Bank plc Review of fraud and related operational risks at Bernard L. Madoff Investment Securities LLC," according to the ruling. The bank also has an audio recording of a July 17, 2008, presentation by KPMG related to its reviews of Madoff risk.

HSBC spokesman Adrian Russell said the company can't comment on ongoing litigation.

Banco Santander SA, the Spanish bank that lost $3.2 billion in the scam, did a similar study of potential risk at Madoff's firm in 2006, according to court records in a lawsuit filed by investors. The bank allegedly identified threats tied to his secrecy and accounting practices without notifying customers. Picard in July 2009 sued HSBC and Cayman Islands-based Herald Fund Spc for the return of $578 million of "fake" profit withdrawn from Madoff's firm. A hearing on a request to dismiss the case is scheduled for November 4 in New York. Herald has also sued HSBC.

Picard is seeking the return of about $15 billion to repay victims through lawsuits filed against hedge funds and other parties that profited from the $65 billion fraud. Madoff, 72, pleaded guilty last year and is serving a 150-year sentence.

HSBC's Luxembourg unit was custodian for Herald (Lux) US Absolute Return Fund, which was forced to dissolve because of Madoff-related losses.

The bank was sued by investors in Ireland for allegedly failing in its duties as custodian for Thema International Fund Plc and AA (Alternative Advantage) Plc, two funds that lost money in the fraud.

HSBC in January was ordered by a court in Ireland to disclose how much control Madoff had over assets the bank transferred to him from two Dublin funds.

Custodians manage deposits and payments to fund investors.

Picard also wants HSBC to give the London court contracts between the bank and funds including Herald, Alpha Prime Fund Ltd., Herald (LUX), Kingate Euro Fund Ltd., Kingate Global Fund Ltd. and Optimal Multiadvisors Ltd., among others.