by Daniel Costello

Iceland's banking crises spun out even more overnight as the government took control of the country's largest bank, hoping to prevent an all out collapse over its banking system.

In recent days, the government seized its second and third biggest banks — which are both now in receivership — after the Prime Minister warned that the country was at risk of "national bankruptcy."

Why would a country with a population smaller than that of Pittsburgh mean much to the global economy?

A full-blown collapse of Iceland's financial system could be a blow to the rest of Europe, where Icelandic banks and companies have invested heavily in businesses. If they're scared enough, investors could continue to push down dominoes around the world.

Here's a piece from Tina Brown's new Daily Beast news site.