Iceland’s Financial Supervisory Authority (FME) took the decision on Thursday to remove the board of Sparisjodabanki (formerly IceBank), which was put under Central Bank control by the FME nearly two weeks ago. Read the full story

Gylfi Magnusson, Iceland’s Minister of Commerce is not excited by the possibility of merging the banking sector so that one super-bank could have over 50 percent market share. From a competition point-of-view, that would not be a good long term situation, he argues. Read the full story

The Government of Iceland has appointed Norwegian-French Magistrate Eva Joly as a special adviser on the investigation of cases linked to the country’s economic collapse. Read the full story

PRESS RELEASE FROM STRAUMUR BURDARAS BANK:

In spite of its strong capital position and the support of funding banks Straumur Burdaras Investment bank hf. (Straumur) believes that its liquidity position is no longer strong enough to sustain its activities. Read the full story

PRESS RELEASE FROM THE PRIME MINISTER’S OFFICE:

At a meeting held on 3 February, the Government of Iceland approved a proposal from the Prime Minister to conclude a contract with the international corporate advisory firm Hawkpoint to work under the supervision of Icelandic authorities on reaching a settlement between the old and new banks. Read the full story

As reported on IceNews, the Rod Fishing Association of Seydisfjordur confirmed a few weeks ago that when it pressed the banks on whether they would be purchasing their usual fishing licences this year, they all replied that they would not. But new information in the latest amateur flying newsletter means the story may not have been as simple as it seemed. Read the full story

Geir H. Haarde, the Icelandic Prime Minister, said at the end of a parliamentary debate on economics, that all deposits with the three nationalised banks are insured. Rumours that something unnatural is going on in the banks are simply preposterous, and none of the new banks are going to go under, he assured MPs. Read the full story

The London School of Economics professor and Iceland expert, Robert Wade appeared on Iceland’s most popular political magazine programme Kastljos this week.

In the nearly 13 minute-long interview, Wade expressed his frustration that his (and others’) dire warnings on the Icelandic economy were not listened to over recent years. Read the full story

Olafur Thor Hauksson, the District Commissioner of Akranes, has been named special prosecutor to head up the investigation into the collapse of the Icelandic banks, MBL.is reports.

Hauksson was chosen by Minister of Justice Bjorn Bjarnason, in co-operation with an all-party parliamentary committee. The extended deadline for the naming of a head prosecutor passed yesterday. Read the full story

Hordur Torfason, the musician and protest organiser, said on a recent political chat show that he thinks the weekly Saturday afternoon protests he organises are having an effect, MBL.is reports. Read the full story