The long-standing pursuit of the United States regulators to hold former Wells Fargo executives accountable for the bank’s infamous fake-accounts scandal has concluded with surprisingly little fanfare. The Office of the Comptroller of the Currency (OCC) settled its final case against former Wells risk executive Claudia Russ Anderson for $0, a sharp decline from the $10 million penalty initially imposed by Michael Hsu, the acting comptroller of the currency during the Biden administration.
A Decade-Long Response to a Momentous Scandal
The OCC’s decision to settle came as oral arguments were approaching in Russ Anderson’s federal court appeal of Hsu’s decision. The conclusion of this case wraps up the U.S. government’s decade-long response to the momentous scandal, which relied heavily on charges brought in the administrative law system.
In a recent commentary, Russ Anderson said, “The fact that they wanted $5 million from me, and then $10 million, and we’re settling for zero — I think tells you everything you need to know.” The settlement also lifts a previous ban from the banking industry imposed by the OCC. Russ Anderson is now free to work at a bank again, provided she presents a copy of her consent order with the OCC to its president or CEO.
OCC’s Perspective on the Settlement
An OCC spokesperson referred to the settlement as “the culmination of the OCC’s enforcement actions” to hold eleven former Wells Fargo executives accountable for their roles in the bank’s sales practices misconduct. The spokesperson further elaborated that the OCC’s actions have resulted in the collection of more than $43 million in civil money penalties and included orders of prohibition against Wells Fargo’s former Chairman & CEO John Stumpf and former Head of the Community Bank Carrie Tolstedt.
A Reflective Look at a Long-Standing Career in Banking
In an interview, Russ Anderson reflected on her over three-decade-long career in banking and how it abruptly ended following the Wells Fargo sales misconduct scandal. She shared her journey, starting from her trainee program at a Wells Fargo predecessor bank in Duluth, Minnesota, in 1980, to eventually rising through the ranks at Norwest Corp., which later acquired Wells Fargo but retained the San Francisco bank’s name.
Russ Anderson emphasized that the sales misconduct at Wells Fargo was common in the banking industry. She stated, “Nobody should dispute the fact that Wells Fargo was a sales organization. I mean, every bank in the country is a sales organization. And so with that, you’re going to get people who have misbehaviors. I don’t think Wells Fargo was different from other financial institutions in the sales practices field.”
The Administrative Law System: A Tumultuous Journey
The administrative law system has been a contentious point throughout the case. The system has come under attack from lawyers for former bankers, the Trump administration, and the U.S. Supreme Court. Critics argue that it does not offer the same rights and protections as federal courts, creating an uphill battle for those facing charges. According to Russ Anderson’s attorneys, “the process we went through was the most unfair forum I’ve ever experienced in a United States courtroom.”
Despite these criticisms, the administrative law system has its defenders. Retired administrative law judge Chris McNeil, who presided over the cases against former Wells Fargo executives, acknowledged the differences between the administrative and judicial processes but argued that the system offered multiple opportunities for appeal. However, he also speculated that the OCC might have decided to settle the cases due to fears of lack of support from federal appeals courts.
The Aftermath: An End to a Long-Standing Battle
Despite the tumultuous journey, the settlement has brought a sense of relief to Claudia Russ Anderson. The legal saga disrupted holidays, overshadowed key milestones in her life, and stoked fears that she and her husband would have to file for bankruptcy. Now, at 67, she looks forward to a normal life, expressing, “I can finally, at 67, look forward to a normal life.”
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