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The revenue service said the five suspects, none of whom has been identified, were arrested at their homes in London and southern England on Wednesday. Authorities said the inquiry was in connection with the personal financial affairs of the suspects and unrelated to the bank’s work.

Britain’s government owns 82 percent of the Edinburgh, Scotland-based bank. It was rescued during the credit crisis of 2008 with $72 billion of taxpayers’ money. In a statement, the Royal Bank of Scotland said it was “fully cooperating with” tax authorities, but would not comment further.


MF Global trustee says at least $1.6B missing

The court-appointed trustee overseeing MF Global’s liquidation says an additional $400 million is missing from customer accounts, bringing the total to a least $1.6 billion.

The trustee, James Giddens, said in a statement Friday that the new estimate was based on his investigation and that it could change again. Mr. Giddens has been combing through the accounts of MF Global, which was headed by former New Jersey Gov. Jon Corzine, since it filed for bankruptcy protection on Oct. 31.

Mr. Giddens says most of the cash transactions in the last week before the bankruptcy filing have been traced. Regulators are investigating whether MF Global tapped money from clients’ accounts as its financial condition worsened. That would violate securities laws.

Mr. Giddens has returned about $3.9 billion to customers.


Justice Department calls Swiss bank a ‘fugitive’

NEW YORK | The Justice Department is calling Switzerland’s largest private bank a fugitive from justice after it didn’t show up for a court hearing in New York.

Wegelin & Co. is charged with conspiring with American clients to hide $1.2 billion from the Internal Revenue Service.

The bank, which doesn’t have an office in the U.S., was indicted Feb. 2. Since then, U.S. officials haven’t found a way to move the case forward.

The bank was summoned to appear before a federal judge at 3 p.m. Friday, but no one showed. The judge presiding over the case asked prosecutors for a proposal on what to do next. The hearing ended without any immediate resolution.

From wire dispatches and staff reports