The Icelandic Stock Exchange fell by 76% in early trading as it re-opened after closing for two days last week.
The country's economy has almost collapsed, after lending on the money markets dried up.
Iceland has become one of the highest-profile victims of the credit crunch.
Last week, authorities took control of the operations of three major banks, Kaupthing, Landsbanki and Glitnir, in which hundreds of thousands of Britons have savings.
Trading in six financial stocks - Kaupthing, Landsbanki, Glitnir, Straumur-Burdaras, Reykjavik Savings Bank (SPRON) and Exista - remains suspended.
Officials from Iceland are in Moscow for talks on an emergency loan that could be worth billions of euros.
Meanwhile, the UK Government has announced extra help for around 300,000 British firms and individuals with deposits in collapsed internet bank Icesave.
It is to lend the parent company Landsbanki £100m to help depositors get their money back.
Quote:
Originally Posted by Steve_A
Hi Everybody,
This just in. With first installment of the $700b in hand, President George Bush should announce today that the treasury will buy stakes in Bank of America Corp, Wells Fargo, Citigroup, JPMorgan Chase & Co, Goldman Sachs, Morgan Stanley, Bank of New York Mellon Corp, State Street Corp and Merrill Lynch.
Best regards,
Steve
|