It's not poor risk management. The banks (correctly) have identified that the government cannot, without massive backlash both political and economic in nature,

It's not poor risk management. The banks (correctly) have identified that the government cannot, without massive backlash both political and economic in nature, permit them to fail in the way they should. They are some of the largest trees in the financial forest, and even if they are rotten to the core, they're incredibly big trees and as one of them falls, it will shred it's neighbors.