Iceland's government took control of the third largest Icelandic bank Glitnir today, buying a 75 per cent stake for €600 million ($878 million), the bank said.
Glitnir said its funding position had deteriorated in recent days and it will issue new equity. It said its core operations were solid.
The news comes after a wave of banking collapses in the United States and Europe and marks the first major Icelandic banking nationalisation in the current turmoil. It sent the Icelandic crown falling to a fresh record low against the euro.
Reuters