Bankruptcy appears to loom for Iceland after the government takes over Kaupthing Bank, the third and final of the country s three banks to come under government control. Iceland also suspends trading on its equities markets today. Meanwhile, trading in the krona, the nation s currency, stops after an aborted stab at fixing the exchange rate to the euro. Financial analysts speculate that only an intervention from the IMF can prevent Iceland s financial collapse.

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Fast Cash

The White House today reveals a possible plan to buy equity stakes in troubled U.S. banks through cash injections, but says such investments would not turn into government takeovers of the banks. The worsening stock market swoon this week hastened the Treasury s search for solutions to ease the credit crunch and free up capital so that banks can begin lending again. Other countries, including Iceland and England, have announced similar plans.

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The Hits Keep Coming

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