Friday, January 07, 2011

Computer says no

Good read about how messy the computer systems are, at big banks.

As a result banks tend to operate lots of different databases producing conflicting numbers. “The reality was you could never be certain that anything was correct,” says a former executive at Royal Bank of Scotland. Reported numbers for the bank’s exposure were regularly billions of dollars adrift of reality, he reports; finding the source of the error was hard.

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