Independent situation with Iceland. I don’t know what their exposure to sub-prime is, but there are certainly global factors in play here.
Iceland did stupid leverage, Europe did stupid leverage, Japan and Greenspan fed them the money. The Europeans also bought a lot of MBS (now maybe 50 cents on the dollar) and they took out CDS insurance for them (now worthless). So they are out of luck, their banks are frozen and each country is protecting their own depositors at the expense of banks in the other countries.