There seems to be no end to the pain for the world's banking system. On top of the euro-zone crisis and the ever widening Libor scandal, there now come serious allegations against HSBC that "the world's local bank" supplied services to suspected drug dealers and terrorists over a number of years.
And, while not connected to the grave allegations bankers face elsewhere, banks in the UAE also came in for criticism yesterday from the ratings agency Moody's Investors Service on the way it has been accounting for loans impaired as a result of the 2008 crisis.
If the Moody's criticisms are well-founded, it casts serious doubt on the strength of the UAE financial sector at the worst possible time.
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