Iceland and the International Monetary Fund was to stem capital outflows, to restore confidence in the Icelandic economy and to thus stabilize the Icelandic Krona (ISK) 2008–2011 Icelandic financial crisis. Measures adopted by Iceland included an emergency nationalization of the failing banks, a vote of the Icelandic parliament gave the FME (Icelandic Financial Supervisory Authority) broad authority over the insolvent banks. FME proceeded to audit these banks and to split their assets. Measures were also introduced to increase the minimum capital adequacy ratio of the banks to 10% as a part of the effort to re establish confidence in the economy. As a part of these
Iceland in the Cold War a US military base in Iceland. One US official proposed that the US fund pro-Western political parties in Iceland.The US Ambassador to Iceland decided against this because the political risks were too high. If the operation had been exposed, the prospects for a military base in Iceland would have been low, owing to, what the Ambassador described as, the fierce nationalism, independence and sensitivity of the Icelanders. The Ambassador noted that it was safer not to deceive the Icelanders, but to engage with the Icelanders above the board and trust that they would continue to lean westward. In case of