Iceland pleads for calm as bank crisis deepens

• Government seizes control of country's largest bank • Savers urged not to make large cash withdrawals The Icelandic government seized control of the country's largest bank, Kaupthing, yesterday as its prime minister urged savers not to stampede to withdraw cash. In a further sign of the financial storm battering the country, the stock market has been closed until Monday. Talks are expected to begin next week over an estimated €4bn (£3.1bn) loan from Russia, while the prospect of an appeal to the International Monetary Fund remains an option, according to the prime minister, Geir Haarde. This week Iceland took control of two other leading banks, Landsbanki and Glitnir, as Haarde warned of the risk of national bankruptcy. Yesterday the government invoked the same emergency powers to take control of Kaupthing, insisting its... [read full story]