Of course the bank made an error. Duh! The bank did the right thing in contacting Google and requesting their assistance. Why could Google not help? Resolving the potential for massive ID theft appears to be within Google's ability; however, Google seems to take the position, not my problem...privacy or confidential issues prevail. Sorry. Can't help you.
At the least, Google could have acted as a middle-person to help the bank. As such, did Google shirk its social duty to help? How can Google justify ignoring their ability to help avert a major financial crisis for all the affected customers. In conclusion, I feel Google had a chance to demonstrate being a good corporate citizen and be a part of the solution. Naughty, naughty Google.