Constitutional Clash: Jarkesy Reverberates
Anderson’s argument that she was entitled to a federal jury trial draws heavily from the Jarkesy decision—a 2023 U.S. Supreme Court ruling that restricted the SEC’s ability to impose penalties through its own in-house courts.
However, the OCC dismissed the comparison, arguing that banking regulations fall under the “public rights exception” that allows agencies like the OCC to handle such matters internally, especially given the federally insured and highly regulated nature of the banking sector.
“Her argument rests on a fundamental misunderstanding of both Article III and the Seventh Amendment,” the OCC’s brief asserted.
Financial Penalty Dispute: Excessive or Justified?
Anderson also took aim at the $10 million fine, calling it “roughly twice her net worth” and excessive. But the OCC countered that she failed to back up her claims with proper documentation, providing only a self-compiled statement without financial evidence.
The OCC’s penalty, imposed in January, was the culmination of a long-running administrative enforcement action dating back to revelations that Wells Fargo employees, under pressure to meet sales goals, had created millions of phony accounts for unsuspecting customers before 2016.
