The former chairman of Iceland’s largest bank, which failed badly in the early days of the world financial crisis, will be questioned today after returning to the country, it was reported.

The Icelandic government was today reported to be in crisis talks with the country's central bank over moves to prop up the banking sector.

A key player in recent takeover activity on Irish and British high streets has lined up a £1bn (€1.4bn) war chest for a major deal of its own, it was reported today.