Questions regarding the actions of the Financial Supervisory Authority, Iceland (FME) due to the situation in the financial markets

What actions has the FME taken regarding the situation in the financial markets?
Based on new legislation, Act no. 125/2008, regarding special circumstances in the financial markets, the FME has proceeded to take over the board activities and management of Landsbanki Íslands hf., Glitnir banki hf. and Kaupthing banki hf. to ensure continued commercial bank operations in Iceland.

The objective of the FME´s action is to guarantee a functioning domestic banking system.

Further information and an English version of Act No.  125/2008 can be found here:
http://eng.vidskiptaraduneyti.is/Publications/nr/2800

Do these actions ensure financial stability?
The FME has taken action and will keep on taking action as it deems necessary to ensure financial stability under the circumstances which have developed in the financial markets. Such actions are continuously assessed and valued as circumstances develop. 

Are further actions to be expected?
The action taken by the FME is a necessary first step in achieving the objectives of the Icelandic Government and Parliament to ensure the continued orderly operation of domestic banking and the safety of domestic deposits.

FME is authorized to take further action and will do so if  necessary.  The current situation in the financial markets calls for action and interplay between many market partisipants as well as governmental institutions.

Are Icelandic banks bankrupt?
None of the Icelandic banks are bankrupt. The FME has under the authorisation granted by Parliament in Act no. 125/2008, regarding special circumstances in the financial markets, proceeded to take over board activities and management of Landsbankinn, Glitnir and Kaupthing. 

What does this mean to individuals and companies in Iceland?
The FME‘s actions aim at ensuring that Icelandic homes and companies can have access to a necessary service and operation by banks. 

Other useful information

The Depositors´and Investors´ Guarantee Fund: http://www.tryggingarsjodur.is/
On its website there are answers to commonly asked questions at www.tryggingarsjodur.is/SS/ 
The Prime Minister‘s Office: http://eng.forsaetisraduneyti.is/
The Ministry of Finance: http://eng.fjarmalaraduneyti.is/
The Central Bank of Iceland: http://sedlabanki.is/?pageid=194
The International Federation of Red Cross and Red Crescent Societies at http://www.ifrc.org/address/directory.asp?navid=10_02