TOPWRAP 7-Russia and Iceland act to stem banking crisis

* Iceland takes over Landsbanki

* Russia lends 950 billion roubles to banks

* Australia cuts rates by 100 basis points

* Britain considering capital injection for banks

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By Omar Valdimarsson and Keith Weir

REYKJAVIK/LONDON (Reuters) - Iceland took over its second largest bank on Tuesday and Russia announced an aid package for the financial sector to bail out victims of the global financial crisis.

Australia responded to the growing crisis by cutting its interest rates by 100 basis points to 6.0 percent, putting pressure on Western central banks to cut the cost of borrowing.

"Policymakers urgently need to get some traction in their policy initiatives, if disaster is to be avoided," Barclays Wealth told its clients in a note.  Continued...