the financial crisis spreads to Iceland
the financial markets are in turmoil outside the US also
mortgage companies, investment banks and insurance groups are collapsing in the UK, Belgium and Germany as well as the US, with the trouble likely to spread further
now one of Iceland's major investment banks has collapsed leading to a partial nationalization, with the Icelandic government assuming a 75% ownership and injecting about a billion dollar to recapitalize the bank after losses
Glitnir is one of the three big commercial banks in Iceland who expanded aggressively into foreign markets during and after the tech bubble in the 90s
Glitnir was rebranded from its more stodgy previous name, "the Bank of Iceland" (not to be confused with the Central Bank of Iceland), which in turn was formed through forced merger of several depository banks during a previous crisis.
I used to have accounts in some of those banks...
Wonder how that one cousin of mine is doing - should go check facebook or something.
PS: Krugman approves - not clear the rest of the world does, Icelandic government bond ratings were downgraded and there may be a need for more bailouts.
This will put pressure on the króna and interest rates.
Good news is I think the Norwegian Central Bank is backstopping us.
Bad news is that the Norwegian Central Bank may end up owning us.
On the other hand, the time may be near when the Norwegian Central Bank is the only institution in the world with any actual money, so they may end up owning a lot.