1. Iceland should make sure all investments loaned to Baugur are liquidated. Many of them can be merged with other UK companies.
2. Iceland should sell the banks deposits and branches to more reliable international banks like Santander.
3. The UK should stop the passport scheme.

Jonathan Sklan-Willis, Manchester, England

This is a digraceful and unfriendly act by Gordon Brown to Iceland just to try to take the heat away from his own gross mismnagement of the UK economy which is 10 times worse than Iceland's.

jbentley, Brighton, UK

people should watch Iceland with keen interest. Its micro economy it but a smaller version of the US and UK. It only hit there first due to its RELATIVE weakness. dont think the dollar or the Euro are unassailable during this global meltdown of highly leveraged and totally unregulated derivatives

Lawr, Gaborone, Botswana

So this crisis is Brown's Falklands. Let's go sort it out the traditional way, won't take half as long for the fleet to get there.

David, St Albans, UK

"The final straw came when Britain transferred control of the business of Kaupthing Edge, its Internet bank, to ING Direct and put Kaupthing\u2019s UK operations into administration. That put Kaupthing in technical default, ... "

So the UK had to "sort out" a disaster regulators here had triggered?

James M, York, England

Halldor the Krona wasn't attacked! It has become worthless because Iceland is basically bankrupt. As to Iceland entering the euro why on earth would eurozone economies allow a country with such toxic debt and bankruptcy to enter their system. You haven't had a real economic boom - it's an illusion

Sue, Sheffield, UK

Stop worrying, Iceland has a population that can easily be absorbed by the UK and its economy. If the worst happens, unemployed Icelanders can move to the UK in return for fishing quotas.

David Whitney, Blackpool, UK

But... if the Icelandic state is forced to go into bankrupcy, won't all the businesses here in England that are owned by Icelandic investors, particularly those where their banks are heavily involved, go into bankrupcy as well?

Morgan, Telford, United Kingdom

So, my deposits with KSF, a UK bank fully guaranteed by the FSC, have been transferred to Ing, a Dutch bank operating a "passport" scheme. Should I feel thrilled?

Alan, London,

Very sad story. This was an execution live from Parliament yesterday, Gordon Brown and Darling - as it seems because of some rumours from Reykjavik - knocked down Kaupthing, using law against terrorism against Iceland. Who needs enemies who has such friends...

Halldor, Reykjavik, Iceland

<to Jason C> Iceland finances failed because the krona was attacked, we need the euro for our next economic boom, nobody dares to attack the euro. - Anyway, Iceland has already incorporated over 85% of all Brussels regulations and counting.

Halldor, Reykjavik, Iceland

Icelandic banks should never be allowed to trade in the UK again they have acted irresponsibly & not only have put UK savers money at risk but several hundred employees will lose their jobs as a result of their recklesness. Thank god labour have shown the integrity which the Icelandic banks lack!

charmaine, London,

Someone should help Iceland out, but for God's sake not Russia!

Sam, Cambridge,

€4 billion (£3.1 million)

Oh come on the Euro is not worth that little :)

Roger, London, UK

As sorry as this whole affair has become it is refreshing to here a frank and honest acceptance of responsibility. Why has Iceland finances failed, because it bit off more than it could chew and tried to be something it is not.

Well done to the UK Labour government to sort out a Global problem

Jason C, Selby, UK