Iceland suspends bank shares, offers guarantee

Iceland has halted trading on stocks in its beleaguered banks and guaranteed all customer deposits in a bid to stop a raft of selling on signs the country's banking system is near to collapse.

FME, Iceland's financial supervisor, said on Monday that it had decided to temporarily suspend trading in all financial instruments issued by Glitnir, Kaupthing, Landsbanki, Straumur, Spron and Exista.

"Uncertainties regarding the issuers are likely to disrupt normal price formation, and as such, any tr