Thursday, October 9, 2008

Iceland's Financial Regulator to Take Control of Kaupthing

Iceland's Financial Regulator to Take Control of Kaupthing

Oct. 9 (Bloomberg) -- Iceland's Financial Supervisory Authority said it will take control of Kaupthing Bank hf, the Atlantic island's biggest bank and the third lender to be seized by the government as the financial crisis in the country deepens.

Kaupthing's domestic deposits are fully guaranteed, and the objective of the takeover is to provide a ``functioning domestic banking system,'' the regulator said in a statement on its Web site today.

BLOOMBERG

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