In a statement released this morning, the IFSA said: "Based on new legislation, the Icelandic Financial Supervisory Authority proceeds to take control of Landsbanki to ensure continued commercial bank operations in Iceland.

"The objective of the IFSA's action is to guarantee a functioning domestic banking system."

The news comes just a week after Wyndeham chief executive Paul Utting urged calm following the collapse of its minority shareholder Stodir.

As yet the implications for Wyndeham are unclear. Nicholas Mockett of Europa Partners said that the nationalisation may benefit Wyndeham, as it could provide some "stability".

Wyndeham was not currently available for comment.

More to follow...