This hack reminds me of the audit I did on a Bitcoin custodian a while back.

They had a fancy multisig setup. But the source code for that setup was stored on AWS, and they didn't PGP sign it, let alone verify it.

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I wonder how many early era banks had this "trust me bro" level of security

They were in the fortunate scenario that nobody had a computer yet and they were definitely not connected to each other.

Plus they run their own database so you can just rollback whatever transaction you didn't like.

Mainly this. ^

Was thinking physical security, this seems like the equivalent of having a vault door made of cardboard