Icelandic bank share trading halted

The Icelandic Stock Exchange today halted share trading in six major financial institutions as the government said it was drafting a plan to deal with the financial crisis engulfing the Nordic country.

Business Affairs Minister Bjorgvin Sigurdsson had earlier told state radio that a draft of the plan was “well on it’s way” after the country’s banks agreed to sell off some of their foreign assets.

The stock exchange said it had decided to temporarily suspend trading in the big three Icelandic banks – Kaupthing, Landsbanki and Glitnir – plus three other institutions – Exista, Straumur and SPRON – to protect equality between investors while waiting for a government announcement on its plans.

SPRON plummeted 17.4 % before the trading halt.