Landsbanki Íslands announces that the Icelandic Financial Services Authority, the Fjármálaeftirlitið (FME) has decided to take over the powers invested in Landsbanki's shareholders meeting and Landsbanki's Board of Directors. The FME has appointed a receivership committee which has assumed the role of the Board of Directors with immediate effect.

Recent weeks have demonstrated deterioration in the world financial markets not seen since beginning of this century. Established banking institutions have failed and many others are ailing. Governments are taking extraordinary measures to adapt to these challenging times.