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2 ex-Landsbanki Executives Arrested in Iceland

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Two former senior executives with Iceland's failed Landsbanki bank have been arrested over allegations of market manipulation, the special prosecutor's office said Friday.

Prosecutor Olafur Hauksson said he had asked that ex-Landsbanki chief executive Sigurjon Arnson and former head of corporate finance Ivar Gudjonsson be detained in connection with investigation into the collapse of the institution. It's one of several Icelandic banks that failed in 2008 under the weight of enormous debts racked up during the tiny North Atlantic nation's boom.

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