All three Icelandic banks now nationalized

REYKJAVIK -- All three banks in Iceland are now under government control. This morning the assets of Kaupthing Bank--the biggest in the country--were seized, just days after Iceland’s two other banks were put into the hands of financial regulators. Iceland’s banking system was said to be on the brink of collapse. The stock market has been shut. The government has even asked Russia for a four-billion euro lbail-out. Meanwhile France, Belgium, and Luxembourg have said they will guarantee loans for the banking group Dexia for at least a month to allow it to consolidate its position. Its... [read full story]