
Officers were called to the Co-op bank in Market Street on Thursday morning.
The newly arrested man, also 23, is unemployed and from Luton. He was arrested at his home on Thursday night on suspicion of conspiracy to steal.
The man arrested after the stand-off, from Luton, is a Co-op bank worker, police said.
Bomb disposalHe remains in custody and is being questioned on suspicion of conspiracy to steal.
Hertfordshire Police said a suspected explosive device recovered after the incident had not been "viable".
Ch Insp Mike Pryce, of Hertfordshire Police, told a press conference that Army bomb disposal experts had been at the scene.
The force was also supported by specialist firearms experts from the military.
Witnesses described police marksmen aiming their guns at the bank.
Police closed the main roads around the bank and the ring road, causing traffic to back up.
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