Iceland's Biggest Bank Seized In Stabilization Effort

  • Playlist
  • Download
  • Embed
    Embed <iframe src="" width="100%" height="290" frameborder="0" scrolling="no">
  • Transcript

Iceland is one of the more dramatic casualties of the global financial crisis. Government officials seized control of the country's biggest bank Thursday, trying to shore up its banking system. It's the third time this week it has had to nationalize a troubled major bank.

Iceland's banks were especially aggressive during the global credit boom and took on enormous amounts of debt. When that credit boom went bust, the banks were hammered.

Earlier this week, the prime minister warned that the entire country could go bankrupt.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.