Tycoons arrested in bank probe

British property tycoons Robert and Vincent Tchenguiz were arrested today as part of an international fraud probe into the collapse of Icelandic bank Kaupthing, sources said.

The pair are being questioned by police in London after a string of dawn raids across the city.

In total, seven men have been arrested in the UK in connection with the fall of Kaupthing, one of three Icelandic banks that failed at the height of the credit crunch in October 2008.

The Tchenguiz brothers built up a financial empire specialising in property and leisure.

A team of 135 police officers and SFO investigators were involved in dawn raids, with arrests made after two business properties and eight residential addresses were searched in the London area.

Two men aged 42 and 43 were also arrested in a joint operation in Reykjavik, Iceland, the statement added.

The SFO said the operations relate to its ongoing investigation into the circumstances surrounding the collapse of the banking group.