10/7/2008

The Icelandic parliament approved legislation that gives the government broad authority over the country's banks, including the ability to force them to merge or sell off subsidiaries as well as the ability to seize assets. The government is expected to fully nationalise Landsbanki and Glitnir soon, while a third bank, Kaupthing, was forced to accept state loans. Turmoil in the banking system has triggered panic among Iceland's 300,000 residents.

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