A while ago I worked at a bank, doing stuff there, and I was exposed to their internal IT structure. As a result of that experience, I decided that I will never put any money in that bank. I am in no way naive enough to think that the situation is different in other banks, but at least I didn't know how bad it was. In fact, that experience has led me to the following observation:
There is a direct reverse relationship between the amount of money a piece of code handles and its quality.
The biggest bank in Israel just had about 60 hours of downtime. Oh, and it also provide computing services for a couple of other banks as well, so we had three major banks down for over two days. The major bank, Hapoalim, happen to be my bank as well, and downtime in this scenario means that all of the systems in the bank were down. From credit card processing to the internal systems and from trading systems to their online presence and their customer service.
From what I was able to find out, they managed to mess up an upgrade, and went down hard. I was personally affected by this when I came to Israel on Sunday's morning, I wasn't able to withdraw any money, and my credit cards weren't worth the plastic they are made of (a bit of a problem when I need a cab to go home). I am scared to think what would have happened if I was still abroad, and my bank is basically in system meltdown and inaccessible.
I was at the bank yesterday, one of the few times that I actually had to physically go there, and I was told that this is the first time that they had such a problem ever, and the people I was speaking with has more than 30 years of working for the bank.
I am dying to know what exactly happened, not that I expect that I ever will, but professional curiosity is eating me up. My personal estimate of the damage to the bank is upward of 250 million, in addition to reputation & trust damage. That doesn't take into account lawsuits that are going to be filed against the bank, nor does it take into account the additional costs that they are going to incur as a result of that just from what the auditors are going to do to them.
Oh, conspiracy theories are flourishing, but that most damning piece as far as I am concern is how little attention the media has paid for this issue overall.
Leaving aside the actual cause, I am now much more concern with the disaster recovery procedures there...