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Iceland's Biggest Bank Seized In Stabilization Effort

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Iceland's Biggest Bank Seized In Stabilization Effort

Business

Iceland's Biggest Bank Seized In Stabilization Effort

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STEVE INSKEEP, host:

NPR's business news starts with the latest from tiny Iceland's big crisis.

(Soundbite of music)

INSKEEP: The island nation is one of the more dramatic casualties of the global financial crisis. Today's news from the capital Reykjavik is that Iceland's government has taken over the country's biggest bank. It's the third time this week that Iceland's government has had to nationalize a major bank in trouble. Iceland's banks were especially aggressive during the global credit boom and took an enormous amount of debt. And when that credit boom went bust, Iceland banks were hammered. Earlier this week, the prime minister warned his entire country could go bankrupt.

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