Maybe I’m naive or just stubborn (yes) or both but I can’t get too excited by today’s news of a judgement against Bank of America. Because it doesn’t change much down the road. You’ll see why.

Per The Wall Street Journal (behind the pay wall):

In a major win for the U.S. government, a jury Wednesday found Bank of America Corp. liable for fraud related to loans its Countrywide Financial Corp. unit sold to mortgage-finance giants Fannie Mae and Freddie Mac in a program called the “Hustle” in 2007 and 2008.

The decision in this civil case marks the first time a bank has been found liable for fraud for its dealings during the mortgage boom, legal analysts said. Bank of America, the second-largest U.S. bank by assets, bought Countrywide in 2008.

And:

Civil penalties in the case will be determined later by Judge Jed Rakoff. The statute provides that the federal government can obtain penalties based on the gain that the violator received or the loss suffered by the victim, whichever is greater. According to the government, Fannie Mae and Freddie Mac suffered gross losses of $850 million and a net loss of $131 million on the soured loans created by the Hustle program. The government alleges Countrywide made $165 million on the program.

Of course, I add my usual refrain: the high executives won’t pay a dime out of their own pockets. And no one will go to jail as this was a civil trial. So, the rules won’t change: the message will still be that high executives responsible for high crimes and financial wrongdoing on Wall Street will never be punished with jail time or significant personal financial hits so they will always roll the dice and make a play because greed is still the great motivator.