The operation was closed down without even informing the principal stockholders in Abu Dhabi. It was only after the order to close the bank was issued that the banking authorities of Abu Dhabi protested. But to no avail. Often just before a general collapse, a welter of rumors appears attributing the causes of the collapse of this or that bank or corporation to fraud and deceit. The same is true in the collapse of this mammoth international bank.
Reports call it the worst banking scandal ever.
It is so much like what has happened in previous capitalist crises, when the symptoms were confused with the fundamental causes. The symptoms as reported in the capitalist press almost always are criminal conduct by the corporate officers as well as the government officials entrusted with overseeing their functions, such as the banking regulatory agencies. This has been the case in almost every crisis, and most particularly since the collapse that began with the 1929 stock market crash. When the Bank of the United States, chartered in New York, collapsed, the cause was attributed to the officials of the bank, who were charged, tried and convicted. The objective significance of the charges of fraud, deceit, mismanagement, inefficiency, corruption, etc., etc., is to divert attention from the fundamental causes of the crisis.