October 12, 2008 / 6:14 PM / 10 years ago

Norway takes charge of Kaupthing's Norwegian arm

OSLO, Oct 12 (Reuters) - Norway’s government said on Sunday that it would take control of the Norwegian subsidiary of collapsed Icelandic bank Kaupthing KAUP.IC, which has fallen into the hands of Icelandic regulators.

“The decision comprises Kaupthing’s banking and securities operations in Norway and applies to all of the bank’s assets and liabilities in Norway,” the finance ministry said in a statement.

The move was intended to ensure that money can be paid out of the Norwegian subsidiary in an orderly fashion and came under new new rules to regulate subsidiaries of foreign banks, it said.

Iceland’s financial watchdog took control of Kaupthing, the Atlantic island nation’s biggest bank, last week — the third such takeover in a week — as the global financial crisis has hammered Icelandic financial institutions.

Reporting by John Acher

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