Local media DV.is reported today that, according to their sources, Kaupthing bank would buy Landsbanki with the back-up of the Icelandic government. According to the same source, the problems of Landsbanki have been growing since Glitnir bank was taken over by the Icelandic Government. There have been crisis meetings in closed offices around Reykjavik, the capital of Iceland, where this has been on the agenda.
There seam to be two main talks on how the banks in Iceland will be managed, the first is that Kaupthing is to buy Landsbanki and Glitnir will keep on being in the ownership of the Icelandic government, and the other is that the Icelandic government in cooperation with Landsbanki and Kaupthing will split up Glitnir’s assets and the two banks will take them over.