Iceland nationalises bank amid geyser of financial distress

AFP, October, 2008

REYKJAVIK (AFP) — Iceland's government announced it was taking control of the country's second-biggest bank on Tuesday as Russia said it would lend it four billion euros (5.4 billion dollars) to fend off the engulfing financial turmoil.

But all savings deposited by Icelanders were protected, officials reassured.

"The Icelandic Financial Supervisory Authority (IFSA) has, under powers granted by the Icelandic parliament, proceeded to take control of Landsbanki," Iceland's second-biggest bank, the government agency said in a statement.

The IFSA stressed that a complete guarantee for all domestic accounts announced by the government in Reykjavik on Monday would cover Landsbanki's customers.

"Landsbanki's domestic branches, call centres, cash machines and...