It's not exactly surprising that a company known for its extensive dealings with corrupt actors is also bad at managing risk.
HSBC is just as evil, and is doing well enough that they just acquired the UK branch of SVB
https://www.icij.org/investigations/fincen-files/hsbc-moved-...
Acquisitions != health
Another (usual) reason is when a company lacks clear avenues for growth so they are looking to buy some growtg
People willing to take part in criminal activities are almost definitionally less risk averse. You're risking fines, loss of reputation, prison, unemployability, destitution.
Not then surprising that those same people would be more willing to take undue financial risk, all the while maybe closing an eye to some red flags.