Kaupthing nationalized; most of Iceland's banking sector now under national control

Kaupthing said it requested the Icelandic Financial Supervisory Authority (FSA) take control as the crisis for the North Atlantic island's banking sector deepened, bringing most of the country's banking sector under state control.

"The Icelandic (financial regulator) FSA has appointed a winding-up committee which now wields all the authority of the board of directors," Kaupthing said. "The bank's branches in Iceland will be open as usual, and it is hoped that the bank's clients will be inconvenienced as little as possible by these changes."

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