UBS close to $1bn Libor settlement Three former City traders, including former UBS employee Thomas Hayes, were arrested on Tuesday over the alleged manipulation of Japanese borrowing rates as part of a Serious Fraud Office investigation into Libor-rigging. The SFO's actions mark the first arrest of bank staff in connection with allegations that major financial institutions across the world conspired to manipulate key borrowing rates. Royal Bank of Scotland is also likely to be the third bank to admit involvement in the scandal. Its chief executive, Stephen Hester, has said he would be "disappointed" if the taxpayer-backed lender had not reached a settlement before it reports its full-year financial results in February.