From The BBC:
Geir Haarde on the ‘painful process’ facing the banking industry
Iceland has nationalised its biggest bank, Kaupthing, and suspended trade on its stock exchange in an attempt to prevent further panic in the country.
Kaupthing is the third bank to be rescued by Iceland’s government.
The OMX Nordic Exchange Iceland is closed for trading for two days because of “unusual market conditions” and will reopen on Monday.
Meanwhile, Iceland’s Prime Minister Geir Haarde criticised the UK’s move to freeze Icelandic bank assets.
Mr Haarde said the UK used anti-terrorism legislation to freeze assets in Landsbanki in order to protect UK savings in one of its units, Icesave.
“We do not consider this to be a particularly friendly act. But we understand that the UK authorities need to act in the interests of their citizens,” he said.
Prime Minister Gordon Brown has condemned Iceland’s handling of the collapse of its banks and its fail…