The speed of Iceland's downfall in the week since it announced it was nationalizing Glitnir bank, the country's third largest, caught many by surprise, despite warnings it was the "canary in the coal mine" of the global credit squeeze.

NPR: Iceland Shivers From Financial Crisis

The Icelandic government has taken a 75% stake in Glitnir, a bank with outrageous reliance on gummed-up wholesale funding markets.

ECONOMIST: Global banks

The Icelandic government takes control of the country's third-largest bank, Glitnir, after the company faces short-term funding problems.

BBC: Timeline: Credit crunch to downturn

There is also uncertainty over any money held by Landsbanki itself and Glitnir, another Icelandic bank, which are in receivership.

BBC: UK seeks return of Iceland cash