Quote:
Originally Posted by legion
KC,
That bolsters my theory that most "mega-banks" are still running the legacy back-end systems of the dozens of banks they have acquired over the years. I saw some evidence of this when I tried to close my dad's checking account with BofA. It also tells me that their IT infrastructure is overcomplicated and operating in a diseconomy of scale. I further assume that back-end systems have not been consolidated because of the significant one-time costs (despite the huge potential for reoccuring savings), and because they will just acquire another bank next year and have to do it all over again...
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Yes, you are indeed correct. Fact is, they couldn't consolidate systems even if they wanted too...the expertise to do so has long been gone (although they do in fact consolidate data centers, etc.) I haven't been in banking IT for 15 years, but began in the "rodeo" you refer to (first with what is now BofA, and later with the now defunct Wachovia (half of Wells-Fargo). Yep, they are still too big too fail, but the irony is that attempting to "break them up" would be an utter fustercluck too. Deregulation of banking that began in the mid-80s has proven to me that we certainly don't want to go down that same path with the Insurance industry. The powers that be at the top brought this mess on, and convinced the regulatory agencies that it was a "good" thing back when Reagan was in office...hindsight proves otherwise imo. Sorry to get off topic and PARFY
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