Iceland is one of the more dramatic casualties of the global financial crisis. Government officials seized control of the country's biggest bank Thursday, trying to shore up its banking system. It's the third time this week it has had to nationalize a troubled major bank.
Iceland's banks were especially aggressive during the global credit boom and took on enormous amounts of debt. When that credit boom went bust, the banks were hammered.
Earlier this week, the prime minister warned that the entire country could go bankrupt.