Bjorgvin Bjorgvinsson, head of the Icelandic police sexual crimes division, said yesterday that there is no doubt that the newspaper Frettabladid has been advertising prostitution in its classified ads section. The paper says it has done nothing wrong. Read the full story

The British Serious Fraud Office (SFO) is looking into the affairs of the old Icelandic banks and hopes to soon decide whether or not a formal investigation into illegal activities will be launched. Read the full story

Iceland’s biggest newspaper, Frettabladid is distributed free-of-charge seven days a week to people’s homes. It is entirely reliant on advertising revenue and has been suffering along with all other media in the current downturn in the advertising market. Read the full story