Here’s how fluid things are: last week, Iceland nationalized Glitnir, the country’s third-largest bank. Today, it unnationalized Glitnir, putting it into receivership instead: clearly the bank’s liabilities were too large for the Icelandic government to take on.
Yesterday, Iceland pegged its currency to the euro; today it unpegged the currency, saying “there is insufficient support for this exchange rate”.
This is turning into an international incident. A lot of people in the U.K have money in banks based out of Iceland. Its looking like they won’t get their money back.