Icelands’ Banks Frozen

Without assistance from the IMF or other countries, Iceland’s financial situation is dire and could spread. (Forbes)  Its banks’ losses amount to $74 billion or $230,000/per capita — compared to just $3,700/capita in the UK. Iceland’s annual GDP is just $28 billion. It’s krona has fallen 50% against the dollar. Deposits of 300,000 Britains were frozen (though the UK has since guaranteed them). (Market Oracle blog)  Prime minister Geir Haarde warned that it was now “every country for itself.”  (Washington Post) British billionaire, Sir Philip Green, is in talks with the Icelandic government and nationalized banks to buy back £1 billion-plus of debt his companies owe. (Financial Advice)

Sources:

• Iceland braces for next wave of storm, mulls IMF (Forbes)
• Banks to Avoid as Iceland Goes Bankrupt with £10 billion of UK Deposits (Market Oracle)
• Philip Green keen to buy up Icelandic debt on the cheap (Financial Advice)
• The Next World War? It Could Be Financial.  (Washington Post)