UK authorities arrested a former Credit Suisse investment banker on yesterday in connection with US allegations that he and others at the Swiss bank conspired to inflate the values of mortgage bonds during the financial crisis.

Kareem Serageldin, the former global head of the Swiss bank's Structured Credit Trading business, was taken into custody by the Metropolitan Police in London outside the US Embassy yesterday, according to a person familiar with the matter. The Metropolitan Police didn't immediately have a comment when reached on yesterday.