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Thursday, October 09, 2008

Iceland seizes Kaupthing, Closes Stock Exchange

by Calculated Risk on 10/09/2008 11:16:00 AM

“What we have learned from this whole exercise over the last few years is that it is not wise for a small country to try to take a leading role in international banking.”
Geir Haarde, Prime Minister of Iceland
Update from Reuters: Iceland PM asks public not to take out lots of cash
"I want to emphasise ... that people remain calm and understand that the transaction system is fully functioning and deposits are safe," Haarde said.

"I also ask the public not to withdraw large sums of money from the banks. It will make things more difficult."
From The Times: Iceland seizes Kaupthing as meltdown continues
Crisis-hit Iceland has taken control of Kaupthing, its biggest bank, and suspended trading on its stock exchange for two days.

With the nationalisation of Kaupthing, the Icelandic Government now has control of all three of the country's big banks — Kaupthing, Landsbanki and Glitnir ...

The OMX Nordic Exchange Iceland said it will not re-open until Monday, due to “unusual market conditions." Meanwhile trading in the Icelandic crown ground to a halt.