Iceland's Banking System has been Nationalised

[jeffrey]

Iceland’s financial crisis escalated on Thursday with all stock market trading suspended after Kaupthing, the country’s biggest bank, followed domestic peers into state ownership.

The move to nationalise Kaupthing prompted a diplomatic row between the UK and Iceland.

Geir Haarde, Iceland’s prime minister, blamed Kaupthing’s “unfortunate” fall into state hands on “action taken against Kaupthing by the British government”. He and Sigurdur Einarsson, chairman of Kaupthing, said the decision by the British government to put Kaupthing Singer & Friedlander, its UK subsidiary, in administration was partly responsible for the collapse...

FT.com / World - Iceland suspends trading after bank seizures