Earlier quoted context omitted.
Funnily enough I opened a new bank account the other day (Chase) and to my surprise they don't allow special characters to be used in the passwords. It indeed appears that the entire system is broken beyond repair. It seems like it is becoming the norm to expect to be exploited at some point so the de-facto preemption is to have someone to blame. As the manager of a datacenter we recently moved into said "we're here…
My (German) bank only allows passwords up to 5 characters. When I ranted about it on twitter some IT guy from a local branch commented about that is totally enough since they do an hour lockout after 3 wrong tries. I'm thinking about switching banks now...
o Your German bank may have your password stored in an Utimaco/Sophos Hardware-attack-resistant keysafe, not hanging out in some linux hash file.
o If they lock you out after 3 tries, and the keyspace is [a-zA-Z0-9] - that's 916,132,832 combination, and only three attempts to get it right before being locked out.
On the surface, it sounds much less secure, but, depending on their procedures and hardware, it might be significantly more secure than a 9 character password that goes into a hash file that is software accessible.
Of course - better case - is a Hardware key safe that lets me store my 30 character 1password random password.