RECESSION WATCH

Iceland’s Last Bank Nationalized

Iceland’s banking industry took another hit today as Iceland’s last surviving major bank was nationalized after its funding dried up. Straumur-Burdaras Investment Bank lost $883 million in 2008 and lent money to a number of companies that went bankrupt. Iceland’s financial regulator, the Financial Supervisory Authority, suspended the bank’s board, and Chief Executive William Fall resigned. The bank’s major shareholders included Samson Global Holdings, controlled by Icelandic multimillionaire Bjorgolfur Gudmundsson.