There's this myth that IT people can't communicate. Maybe it's because I'm in IT that I think it's quite the opposite: we communicate very well and precisely.
The real issue is that middle management has a ton of politics that muddle up everything. I can say to my team that I messed something up and that we have to fix it; but I've seen people higher up who will bend over backwards just to not have to roll back a decision (and sometimes not even a very important decision).
So maybe someone had already sold to the boss that the equipment was good for another 10 years.
Being able to clearly articulate risk, and the business consequences of technical consequences, is a key skill for IT folk. It’s possible that management at this bank were profoundly thick in the head, but it’s also possible the tech team didn’t explain it very well.