On 7 October 2008, the Icelandic Parliament amended Article 100 of Act No. 161/2002 and conferred on the Icelandic Financial Supervisory Authority (FME) the power to take control of Landsbanki Islands hf. which was immediately used by the FME.
Concurrently, the Icelandic Treasury established a new limited liability company named Nýi Landsbanki Íslands hf (e. New Landsbanki Íslands hf).