The Bank Fraud That Wasn’t

Bernie Sanders claims that fraud is the business model of Wall Street, and most of the Democratic Party has complained for years that prosecutors went too easy on bankers after the financial panic. But this week three federal appellate judges unanimously ruled that the Justice Department didn’t go too easy on bankers; it went way too far.

A panel of the Second Circuit Court of Appeals overturned a $1.27 billion penalty against Bank of America and tossed out a $1 million penalty against Rebecca Mairone, a former executive...