Iceland's banks falter, PM warns of 'real danger'

Iceland’s banks face a battle for survival today, after the country’s government introduced emergency legislation giving it sweeping new powers over the collapsing financial sector.

The government’s attempt to wrest control of the increasingly dire situation and restore some confidence in the country’s hard-hit banking sector followed a day of panic on Monday that saw trading in shares of major banks suspended and the Icelandic krona fall a quarter against the euro.