Iceland expected to ask IMF for help

Iceland's financial system has collapsed, and analysts say it is probably only a matter of time before the country will have to turn to the International Monetary Fund for help. Such a move, which would make this small island nation the first sovereign state to fall victim to the credit squeeze that began last year, would require it to accept harsh measures to restore fiscal and monetary stability. Iceland has tried desperately to avoid such a step. But the odds against it being able to grew worse Thursday when the government took over the last of three major banks and shut down the stock exchange. Trading in the Icelandic krona ceased, with foreign banks no longer willing to take the currency - even at what seemed like bargain rates. Adding to Iceland's sense of isolation, a diplomatic dispute with Britain over money... [read full story]